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      European Commission Implementing Regulation (EU) 2025/778, which aimed to impose trade balancing measures on certain products from the United States and which amended the earlier Implementing Regulation (EU) 2018/886, was originally set to take effect on 15 April 2025.

      The increased tariffs were to be introduced in multiple stages: the first phase on 15 April 2025, followed by further measures entering into force on 16 May and 1 December 2025. However, the EU has opted to defer the application of these tariffs until 14 July 2025. The reason for the suspension is to provide the necessary time and flexibility for negotiations between the European Union and the United States.

      The regulation was adopted in response to the United States’ decision in March to impose tariffs on steel and aluminum products originating in the European Union. The EU views the United States tariffs as unjustified protectionist measures that will inflict disproportionate economic harm and negatively affect both EU and global economies.

      The European Commission’s proposed countermeasures would see the EU impose additional ad valorem duties on various US products. These duties would typically be 25%, though some goods would be subject to a 10% rate. The full package of measures would affect US imports valued at approximately 22 billion dollars.

      The range of affected goods is broad. The tariff increases include categories such as certain iron and steel products, agricultural goods, foodstuffs, textiles, sporting equipment, and motorcycles.

      In a statement issued by the European Commission, the EU countermeasures will enter into force if “the negotiations with the United States do not yield a satisfactory outcome.”

      KPMG experts are ready to assist you in understanding and managing the impact of these challenges on your business.


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