EU-US trade agreement: What does the tariff reduction from 27.5% to 15% mean?

The Ruse Chamber of Commerce and Industry informs its members and partners about the framework agreement reached between the European Union and the USA, which will have a direct impact on the European automotive industry and related industries.

Main parameters of the agreement

On August 22, 2025, Washington and Brussels finalized the technical details of a trade agreement aimed at strengthening transatlantic trade relations. The agreement provides for:

For European manufacturers:

• Reducing US tariffs on European cars from 27.5% to 15%
• Limiting tariffs to 15% for pharmaceuticals and semiconductors
• Zero tariffs on certain strategic goods

EU commitments:

• Eliminating tariffs on all American manufactured goods, including automobiles
• Preferential access to the European market for American agricultural products
• Reducing non-tariff barriers in the automotive and agricultural sectors

Important terms and conditions

Key condition: The US will implement the tariff reduction only after the EU introduces the relevant legislation and begins implementing its commitments.

Approval procedure: The agreement requires approval by EU member states and possibly the European Parliament, which could take several months.

Importance for Ruse producers

Leading manufacturers of automotive components that are part of European supply chains operate in Ruse and the region. The new agreement could affect:

• Export potential – improved access to the US market for European cars could increase demand for components
• Competitiveness – despite the reduction, 15% tariffs remain a challenge for price competitiveness
• The investment environment – the stabilization of trade relations creates a more predictable business environment

Position of European business

Markus J. Beyrer, Director General of BusinessEurope, stresses the need to:

• Continuation of negotiations to further expand the list of duty-free products
• Redouble efforts to improve European competitiveness
• Reducing regulatory burden and energy costs

Recommendations to local businesses

RCCI advises producers from the region to:

1. Analyze how the changes will affect their specific product lines
2. They study the possibilities for direct or indirect export to the USA
3. Optimize their production processes in view of the new competitive environment
4. They follow the development of the ratification process in the EU

For contact and additional information

The Ruse Chamber of Commerce and Industry is monitoring the development of trade relations between the EU and the US and will continue to inform its members of important changes and opportunities. If necessary, we can assist in establishing contact with specialized consultants and institutions.

The material was prepared based on information published by Monika Varbanova in "Capital" on 22.08.2025.
Source: Capital.bg – The US will maintain high tariffs on European cars until the EU reduces its