EU Tariffs Are Now 15% — The US-EU Trade Deal Took Effect July 1, 2026

What Changed on July 1, 2026

Two implementing regulations, formally adopted by the Council of the EU on June 25, 2026, brought the EU-US Joint Statement's tariff terms into force on July 1. The timeline: the Council and European Parliament struck the implementation deal on May 20, 2026, member states backed it on May 27, and final adoption came June 25.

On the US side, the deal replaces the 10% Section 122 tariff for EU-origin goods with a 15% all-inclusive ceiling on most products. On the EU side, Brussels eliminated all duties on US industrial goods and improved access for certain non-sensitive agri-food products as of the same date — US-built autos entering the EU went from 10% to 0%.

The practical effect for a US importer: EU goods no longer pay MFN plus a 10% surcharge. They pay a single, capped rate — and the EU is now carved out of the Section 122 endgame entirely.

How the 15% All-Inclusive Ceiling Works (No Stacking)

The 15% is a ceiling, not a surcharge — the single most misunderstood point of the deal. The rule works in two directions:

• If your product's MFN rate is below 15% (most machinery, electronics, chemicals, wine, whiskey): you pay a total of 15%. The 15% includes the MFN duty — it does not stack on top of it.
• If your product's MFN rate is already 15% or higher (some apparel, footwear, and food lines): you pay MFN only. No surcharge at all.

Worked example: a $25,000 CIF shipment of German CNC machinery (HTS 8458.11.00, MFN 4.4%). Before July 1, the stack was $1,100 MFN + $2,500 Section 122 = $3,600 (14.4%). Under the deal, the same shipment pays a flat 15% = $3,750, all-inclusive, plus MPF ($86.60) and HMF ($31.25). Note the honest math: for low-MFN goods, 15% is slightly *more* than the old 10%-plus-MFN stack — a 0% MFN product went from 10% to 15%. Where EU importers win big is autos (27.5% down to 15%), the cap on pharma and semiconductors, and insulation from the post-July 24 Section 301 reset. Run your specific HTS through the tariff calculator before quoting anything.

Autos: 27.5% Down to 15%

The largest single rate cut in the deal. EU-built passenger vehicles previously paid 2.5% MFN plus the 25% Section 232 auto tariff — 27.5% total. As of July 1, 2026, the 15% ceiling applies in lieu of Section 232 for EU autos and auto parts. A $60,000 German sedan that carried $16,500 in duty on June 30 carries $9,000 today — a $7,500 per-unit reduction. Auto parts get the same treatment, which changes the math for every US assembler and repair chain sourcing European components. Japanese and Korean autos, by contrast, still pay the full 25% Section 232 — the EU deal rate is origin-specific.

Steel and Aluminum: Still 50%

The 15% ceiling does not cover steel and aluminum. EU-origin steel and aluminum remain at 50% Section 232 — the deal explicitly leaves metals subject to further negotiation, and alcoholic beverages are also flagged for continued talks. So a $50,000 coil of German hot-rolled steel still pays $25,000 in Section 232 duty (50% on articles wholly of the metal; derivatives at the 25% tier on full customs value). If you were hoping July 1 would fix EU metals sourcing, it didn't — Canada, Mexico, and the Korean quota arrangement remain the workarounds for Section 232 exposure.

Pharmaceuticals and Semiconductors: Capped at 15%

The 15% ceiling applies in lieu of Section 232 for pharmaceuticals and semiconductors as well — a meaningful cap given what's swirling around both sectors. Semiconductors from non-EU origins pay 25% Section 232; EU chips are capped at 15%. On pharma, the cap matters even more: the administration has threatened 100% tariffs on branded pharmaceutical imports from companies that don't reach onshoring agreements by July 31, 2026 (agreements reduce the rate to 20%). EU branded pharma is capped at 15% by the deal regardless — significant protection for Irish and German pharma supply chains. And from September 1, 2026, generic pharmaceuticals, their ingredients, and chemical precursors from the EU go to MFN-only treatment (typically 0%).

September 1, 2026: The MFN-Only Carve-Out List

The second phase of the deal kicks in on September 1, 2026, when the US applies MFN-only treatment (dropping the 15% ceiling entirely) to three groups of EU goods:

• Unavailable natural resources, including cork
• All aircraft and aircraft parts
• Generic pharmaceuticals, their ingredients, and chemical precursors

For most of these lines MFN is 0%, so these categories effectively go duty-free. If you import in any of these categories, entries filed between July 1 and August 31 pay the 15% ceiling; entries on or after September 1 pay MFN only. Where lead times allow, that timing difference is worth real money — an importer of Portuguese cork or French aircraft parts saves the full 15 points by landing goods after September 1.

EU Importers Are Insulated From the July 24 Section 122 Expiry

The 10% Section 122 global tariff expires July 24, 2026, and USTR faces a July 20 completion deadline on the Section 301 investigations designed to replace it — with proposed 12.5% duties on 46 countries including China, Vietnam, India, Thailand, Japan, and South Korea. For most of the world, the next three weeks are a rate cliff with an uncertain landing.

EU-origin goods are out of that fight. The deal rate is an all-inclusive ceiling under its own framework — EU goods no longer pay Section 122, so its expiry doesn't move EU rates, and the ceiling means no new Section 301 layer can stack on top. In a summer where importers from 46 countries are modeling scenario tables, EU sourcing now comes with something rare in 2026: a known, capped, negotiated rate. That certainty itself has sourcing value — factor it into any EU-vs-Asia supplier comparison alongside the raw rate.

What EU Importers Should Do This Week

1. Re-run every EU landed cost. Any quote built on "MFN + 10%" is wrong as of July 1 — in either direction. Use the tariff calculator with your actual HTS codes.
2. Review entries filed since July 1. Confirm your broker applied the deal rate, not the old Section 122 stack. Misapplied entries can be corrected via post-summary correction — catch them before liquidation.
3. Check your MFN rate against the 15% threshold. If your product's MFN is at or above 15%, you should be paying MFN only, with no surcharge.
4. If you import aircraft parts, cork, or generic pharma inputs, model delaying non-urgent shipments to land on or after September 1, when these go MFN-only.
5. If you import EU autos or parts, reprice now — the 27.5%-to-15% drop changes unit economics materially.
6. Steel and aluminum buyers: nothing changed for you. The 50% Section 232 rate stands, and metals remain under further negotiation.