What were EU tariffs before Trump took office? What to know after trade deal
- Trump reached a trade deal with the European Union over the weekend, setting a 15% tariff on most European goods.
- The deal averted a threatened 30% tariff that Trump had announced earlier in July.
- Previous tariffs on EU goods averaged in the low single digits before Trump, according to media reports.
President Donald Trump reached a trade deal with the European Union during his trip to Scotland over the July 27 weekend.
Trump had previously threatened a 30% tariff on European goods in July, which he said would go into effect on Aug. 1. The deal announced following Trump's meeting with the European Commission president includes a 15% tariff on most goods from Europe and $600 billion in EU investments in the U.S. But Steel and aluminum will continue to face higher rates.
The Europeans had pushed for a 10% tariff rate, which still would have been higher than before Trump took office this year.
The deal comes as Trump's second extension on April's "Liberation Day" tariffs approaches another deadline. He has also made trade deals with several countries since he last delayed "reciprocal tariffs" in July.
But how does the tariff rate in this deal compare to trade between the U.S. and EU before the on-again, off-again tariffs that have been a central theme in Trump's second presidency?
What were the tariffs on EU goods before Trump?
Before Trump returned to office, tariffs on goods coming to the U.S. from Europe were significantly lower, averaging in the low single digits, according to the New York Times. CNN reported the average American tariff rate on European imports was 1.2% before this presidency.
Trump has long been critical of the EU for the trade deficit, saying it was "formed to screw the United States."
What are tariffs?
A tariff is a tax on imports paid by the businesses buying goods from abroad, but the cost is usually passed on to consumers. Despite the jump from the previous tariff rates, the markets responded positively. U.S. stock futures were higher the morning after the deal was announced.
August 1 deadline imposed by Trump looms for many countries
Trump deemed April 2 "Liberation Day" when he announced widespread tariffs on goods from most countries, spanning from a baseline of 10% up to at least 50% in some places. But shortly after, he paused most of the rates above 10% for 90 days.
That first 90 days expired on July 9, but he extended the deadline again and began issuing letters announcing the new tariff rates on exports from other countries.
On the second delay, he said the new deadline would be August 1, and vowed that date would not be changed.
The deal announced with the EU, the group of 27 countries that together make up one of the world's biggest economies, is similar to other deals that have been announced in recent weeks with other major trade partners such as Japan.
Contributing: Savannah Kuchar, Bart Jansen, Medora Lee, Paste BN
Kinsey Crowley is the Trump Connect reporter for the Paste BN Network. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.