2025-08-05
Earlier this year, the United States implemented sector-specific additional tariffs, such as those on steel, aluminum, and motor vehicle imports. Starting from April 5, 2025, an additional uniform 10% tariff was imposed on a broad range of imported products.
Effective April 9, 2025, tariffs were set on a country- and region-specific basis, meaning that imports of products originating in the European Union into the United States would have been subject to a 20% tariff. This, however, was suspended until July 9. The United States have since extended the suspension until July 31, but from August 1, a 30% tariff was expected to be imposed.
The European Union adopted trade-balancing measures on certain products originating from the United States. These measures were originally set to be phased in gradually throughout 2025. However, their enforcement was postponed until July 14, 2025.
In response to the U.S. tariffs taking effect from August 1 on imports from the European Union, the European Commission adopted Implementing Regulation (EU) 2025/1564 on July 24, 2025. This regulation imposes additional duties on certain products originating from the United States, phased in gradually on August 7, 2025; September 7, 2025; December 1, 2025; and February 7, 2026.
However, on July 28, 2025, an agreement was reached between the European Union and the United States under which a 15% tariff will apply to most EU products.
The parties also agreed to mutually apply a 0% tariff on aircraft and aircraft parts, certain chemicals and pharmaceuticals, semiconductor equipment, agricultural products, and critical raw materials.
The adoption and publication of the relevant legislation are anticipated in the near future. It is currently unclear when the tariffs outlined in the agreement will take effect and whether the European Union will revoke the recently adopted countermeasures, some of which are due to be applied starting August 7, 2025.
KPMG experts are pleased to assist in monitoring the regulations, assessing the impact of relevant tariffs on your business, and exploring possible mitigation measures.
