Trade between the US and the European Union (EU) may soon benefit as the EU finalizes a US trade deal. On May 20, European Commission President Ursula von der Leyen announced a provisional agreement to remove duties on US goods. Likewise, the US agreed to maintain a baseline tax on US cars and trucks rather than raising costs. Originally, President Trump planned to increase tariffs on EU imports to 30% in 2025, before securing a deal at 15%. The deal comes after a 5-hour talk and will mitigate tariffs on 27 countries. This explains the cause behind the trade deal and what it could mean for shippers.
Why Is The EU In A Trade Deal With The US?
The current trade deal dates back to Trump’s first presidency, when he imposed 25% tariffs on steel and 10% tariffs on aluminum imports from the EU. The EU responded by imposing levies on nearly $3.2 billion in US imports. Trump threatened further tariffs during his second presidency, and threats between the EU and the US soon reached over 100%. The EU responded by calling for emergency talks, and the parties reached a trade deal on July 27, 2025. Along with the US keeping levies at 15%, the EU has $600 billion in US investments
In May 2026, President Trump declared that the EU had failed to comply with the July 2025 trade deal. Trump threatened to raise tariffs on car and truck imports from the EU to 25% on 4, 2026. Following the threat, EU and US lawmakers reached an interim deal on May 20, 2026. Along with the US capping tariffs on most US imports at 15%, the EU promised to honor the deal the parties signed last year. The deal will also allow the EU to suspend tariff reductions if US imports harm European industries. A vote for final approval will take place around mid-June.
What Can Importers Expect As The EU Finalizes A US Trade Deal?
As the EU finalizes a trade deal with its biggest trade partners, this can be significant for international trade. The EU’s elimination of levies on various goods will reduce import costs from the US. Likewise, the US maintaining a 15% baseline would also prevent higher costs from a tariff increase. Manufacturers, shippers, and logistics partners may feel temporary relief across supply chains. Lower shipping costs could also increase the volume of goods that the US and the EU ship to each other. Subsequently, this can reduce the overall product cost for customers in both regions.
When shipping cargo internationally, various scenarios may arise that can impact cargo movement. Although it shouldn’t halt transport, shippers should take the necessary precautions to prevent disruptions. It may be advisable to contact a freight forwarder before moving goods in or out of the US. Forwarders are third-party companies that act as intermediaries between shippers and carriers, transporting goods on behalf of the shipper. They do this by offering a range of services, including international and domestic shipping, customs clearance, warehousing, and document preparation. Speak to our forwarders at info@a1wwl.com or 305-425-9752 to begin shipping your cargo internationally. We also offer customs brokerage services to clear goods upon entry into the US.