The European Union and the United States issued a joint statement on transatlantic trade and investment on 21 August 2025 which sets out the details of the verbal agreement reached in July. In the statement, the parties confirm their commitments to keep trade and investment stable and predictable.
In this spirit, the European Union intends to remove all tariffs on U.S. industrial goods and to grant preferential market access for a wide range of U.S. seafood and agricultural products.
The United States, in turn, agreed to set a maximum tariff of 15% on EU products. This limit will also cover medicines, semiconductors, and wood products.
However, some products are exempt from the 15% tariff cap. For these, the United States will apply the Most-Favoured-Nation (MFN) tariffs, which are 0% or close to 0%. These include scarce natural resources (such as cork), all aircraft and aircraft parts, generic medicines and their ingredients, as well as certain chemical raw materials.
For passenger cars and car parts, the United States agreed to introduce the 15% tariff cap. However, this will only take effect once the European Union begins implementing the tariff reductions set out in the agreement, such as lowering duties on dairy products, nuts, and certain seafood. Until then, European carmakers will continue to face a 27.5% tariff on exports to the United States.
The parties agreed to hold talks on rules of origin and to cooperate on reducing or eliminating non-tariff barriers.
The European Union committed to ensuring flexibility in implementing the Carbon Border Adjustment Mechanism (CBAM) for imported goods and to engage in dialogue with the United States on the obligations arising from the EU Deforestation Regulation (EUDR).
Following the agreement, as of 7 August 2025 the EU suspended the measures adopted on 24 July aimed at restoring balance. However, the agreement is political and not legally binding. Rules for implementing the commitments are still being developed.
KPMG experts stand ready to assist in monitoring the regulations, evaluating and addressing the impact of tariffs on your business, and advising on possible mitigation options. They also available to provide support compliance with CBAM and EUDR obligations.
