One year after the EU-US trade agreement aimed at reducing tariff disputes, unresolved issues persist, particularly over steel, aluminum, and automobiles. New tariffs imposed by the US add further challenges to transatlantic trade stability.

In July 2025, EU Commission President Ursula von der Leyen and US President Donald Trump reached a landmark agreement to ease tariff tensions and foster smoother trade relations. The deal involved capping EU import tariffs at 10% and abolishing EU tariffs on US industrial goods. While intentions to create stability were clear, the implementation has proven complex, marked by setbacks and ongoing negotiations over specific goods.

Recently, President Trump imposed sweeping tariffs on imports from 60 countries, citing concerns over insufficient measures against forced labor. This action directly impacted EU exports, though the bloc’s Commission maintains that the deal continues to offer advantages. Some products, like cork, diamonds, and generics, now benefit from tariff exemptions under the revised terms. However, sectors such as steel, aluminum, and automobiles remain subject to high duties, with up to 50% tariffs on certain steel products and up to 25% on select trucks.

The German industry association, BDI, expressed mixed feelings about the trade agreement. While some provisions have helped mitigate disruptions, others have yet to deliver meaningful progress for key sectors. Wolfgang Niedermark of the BDI emphasizes the deal as a ‘painful compromise,’ leaving critical industries vulnerable to economic uncertainty. Despite challenges, the EU remains focused on pursuing additional exemptions and mitigating further tariff risks under the volatile US trade policies.