Headlines
European Union awaits US follow-up on trade deal promises
Published by Global Banking and Finance Review
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
The EU is waiting for the US to act on trade deal promises, including tariff reductions and executive orders on car imports.
By Julia Payne
BRUSSELS (Reuters) -The European Union could not say when a joint statement on tariffs with the United States would be ready, nor when the White House would issue an executive order on European car import duties, a spokesperson said on Tuesday.
The EU and U.S. reached a framework trade agreement at the end of July but only the 15% baseline tariff on European exports had so far come into effect, as of last week. EU officials previously said a joint statement would follow the deal "very soon" along with executive orders from U.S. President Donald Trump on key carve-outs.
"It is an agreement that we believe is strong and the best we could have ... Of course, we expect the U.S. to take further steps that are part of this agreement but I don't believe at this stage we can put a timeline on these engagements," the European Commission spokesperson said.
The carve-outs include a reduction of the current 27.5% U.S. import tariff on EU cars and car parts to 15%. While duties on pharmaceuticals and semiconductors are currently zero, if they rise as a result of a U.S. probe into imports of those products, Trump assured these would not exceed the 15% ceiling.
As part of the deal, the EU and U.S. are still finalising a list of products where tariffs would go down to zero on both sides, such as on aircraft, while other products would revert to a much lower most-favoured-nation rate. Separately, negotiations on rates for spirits and wine are expected to drag into the autumn.
Europe still faces tariffs of 50% on steel and aluminium exports to the U.S. but the two sides have agreed to set a quota system and a "metals alliance" that would later lower duties. In the interim, however, EU smelters are under pressure as U.S. tariffs have led to a surge in exports of their main input, scrap metal.
(Reporting by Julia Payne; Editing by Andrew Heavens and Rachna Uppal)
A joint statement is a formal declaration made by two or more parties, typically outlining mutual agreements or commitments on specific issues.
A quota system is a regulatory mechanism that limits the amount of a specific product that can be imported or exported during a given time period.
Carve-outs are specific exceptions or exclusions within a trade agreement that allow certain products or sectors to be treated differently from the general terms.
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