Source: Foundation for Economic Education
by Jake Scott
“As of Sunday, July 27, the United States and the European Union have signed a new trade agreement, imposing a 15% tariff on most EU goods entering the US, while no new tariffs on US goods entering the EU will be implemented. Given that the trade relationship between the two is worth over $1.68 trillion, the aversion of a potential trade war can only be welcomed—but the news for US consumers is less than ideal. Had this agreement not been reached by August 1, President Trump had first threatened a 30% tariff across the board. While the finalized 15% is lower than the original promised tariff, it is still an increase on the previous 10% tariffs that were introduced on all EU goods entering the US set on April 2, 2025, under Trump, and significantly higher than the 1.2% tariff from before Trump’s second term.” (07/31/25)