Trade Deal Takes Shape: US and EU Detail Terms of Agreement
When governments make big trade deals, the ripple effects don’t stay on paper—they affect large swaths of American businesses and consumers, sometimes incrementally, but increasingly all at once. The latest agreement between the U.S. and European Union—finalized in September 2025—sets new terms for how we handle everything from steel and aluminum to chemicals and machinery.
At Blue Ridge Logistics, we know these changes aren’t abstract—they affect your landed costs, delivery deadlines, and sourcing decisions when fungible product can be identified from multiple countries. We’re also intimately aware of how the increased complexity of what historically were single-line entries to U.S. Customs and Border Protection are now multi-line, multi-value nightmares.
Key Points of the New US–EU Framework
Here’s what matters most for shippers and manufacturers:
- Section 232 Metals
- Steel, aluminum, and copper from the EU remain under capped tariffs of 15%.
- Quota discussions continue, but CBP is clear: entries must reflect updated HTSUS codes starting Sept. 25, 2025.
- Steel, aluminum, and copper from the EU remain under capped tariffs of 15%.
- Autos and Auto Parts
- Tariffs are capped at 15% depending on the MFN rate.
- Retroactive relief applies if EU legislation clears quickly—watch your entry dates.
- Tariffs are capped at 15% depending on the MFN rate.
- Chemicals & Pharmaceuticals
- Generic drugs, precursors, and certain essential oils are now exempt from reciprocal tariffs.
- Importers must keep records proving intended use to support exemptions.
- Generic drugs, precursors, and certain essential oils are now exempt from reciprocal tariffs.
- Machinery & Industrial Goods
- EU tariffs drop to zero for U.S. exports, creating an opportunity for American manufacturers.
- U.S. applies MFN or 15% combined tariff—whichever is higher—for inbound EU goods.
- EU tariffs drop to zero for U.S. exports, creating an opportunity for American manufacturers.
- Other Commodities
- Cork and natural resources: exempt.
- Civil aircraft and parts: exempt.
- Agriculture: U.S. pork, dairy, nuts, seafood, and processed foods gain better EU access.
- Cork and natural resources: exempt.
Practical impact: Interested parties can rely on Annex II to know which EU-origin goods are impacted. Annex II is a catalog of HTSUS subheadings. It shows which goods fall under the Section 232 and reciprocal tariff modifications authorized by Executive Order 14346 and implemented in the U.S.–EU framework agreement. Annex II provides the specific HTS codes that customs brokers and importers must use.
What This Means for Importers
Because of the increased and announced enforcement on trade compliance by the Justice Department and CBP, it is more crucial than ever to work with a partner who is up-to-date on the changing terms of these bilateral and regional agreements. Blue Ridge Logistics subscribes to multiple private sector trade publications to remain current, as well as subscribing to publications and messages from the US government including the Federal Register and CBP’s CSMS messaging.
Blue Ridge Logistics Advantage
Trade rules change, but your need for smooth, predictable logistics does not.
The new U.S.–EU trade deal is both a challenge and an opportunity. Metals, machinery, and chemicals are under revised classification and duty assessment rules. We’re here to help you manage these changes by working to file accurate entries and continuously monitor the regulations to ensure you’re in compliance.
Need help understanding this persistently morphing agreement? Contact Blue Ridge Logistics today.