US-EU Trade Deal Takes Effect; US Declines to Renew USMCA

The EU-US trade deal took effect on July 1 with a 15 percent all-inclusive tariff ceiling on most European goods, as the Trump administration declined to renew the USMCA agreement at its joint review.

New tariff ceiling

Under the deal that took effect July 1, most goods from the European Union face a 15 percent all-inclusive tariff ceiling. The agreement set a defined upper limit on tariffs for the bulk of EU exports to the United States, giving both sides a fixed reference point for trade in most categories of goods.

USMCA moves to annual reviews

The Trump administration declined to renew USMCA at its joint review. The agreement remains in force, with its zero percent preference unchanged, but moves to annual reviews as the administration seeks an improved deal. The shift means the North American pact will now be revisited each year rather than renewed on its previous schedule. Instead of a full renewal, the agreement will come up for review annually while the administration presses for the changes it is seeking.

Tariff milestones ahead

Further tariff steps were scheduled but not yet in effect as of the reporting date. A Section 122 10 percent global tariff was set to expire July 24, and a Section 301 investigation faced a completion deadline of July 20. Both dates fell later in the month, leaving their outcomes open at the time of reporting. The July 20 completion deadline and the July 24 expiration marked the next scheduled points in the tariff timeline that followed the July 1 changes.