Legal Alerts/29 Jul 2025

United States and European Union Reach Preliminary Agreement to Resolve Tariff Dispute

On July 27, 2025, the United States and the European Union reached a preliminary trade agreement to resolve the tariff dispute that escalated earlier this month, as discussed in our legal alert published on July 16, 2025 (Trump Administration Announces 30% Tariff on EU Goods – Implications for Finnish Companies). Under the terms of the agreement, the United States will reduce the proposed 30% tariff on EU-manufactured goods to 15% with the exception of EU steel and aluminum exports, which will continue to be subject to a 50% U.S. tariff. In return, the EU is "opening up their countries at zero tariffs" to American exports, according to President Trump.

The agreement is expected to generate approximately $90 billion in annual tariff revenue for the United States based on last year’s trade figures. As part of the broader framework, the EU has also committed to purchase significant volumes of U.S. energy products and arms, and to increase its investment in the U.S. market. These purchases and investments are expected to total over $1.3 trillion in the coming years, according to public statements by the U.S. administration.

Finnish companies with exposure to U.S. markets – particularly in the automotive, industrial, and technology sectors – should review how these revised tariff structures and related commitments may impact pricing, supply chains, and market access. With potential EU retaliatory tariff risks now mitigated and U.S. demand expected to grow, this may also be an opportune time to consider expanding operations or establishing a stronger presence in the United States.

For further questions, please contact Kenneth Kraszewski or Juha Koponen.

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Kenneth Kraszewski

Counsel

Helsinki, New York

Juha Koponen

Partner

Helsinki, London, New York