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Fact check: How have the USA and EU tariff rates changed since the 2020 trade agreement?

Checked on August 4, 2025

1. Summary of the results

Based on the analyses provided, significant changes to USA-EU tariff rates occurred following a 2020 trade agreement. The key developments include:

  • The US implemented a baseline tariff rate of 15% on most EU goods [1] [2] [3] [4], representing a reduction from previously threatened rates of 30% [3]
  • The tariff structure operates as a floor system - goods with existing Column 1 Duty Rates below 15% are brought up to 15%, while goods already at or above 15% face no additional duties [5]
  • Specific sectoral exceptions remain in place - steel, aluminum, and copper imports from the EU continue to face higher tariff rates of 50%, unchanged from previous levels [1] [4]
  • The EU delayed implementing retaliatory tariffs for six months to allow time for the trade agreement implementation [2] [3]

The agreement appears to have established a more predictable trade framework, with the EU and US maintaining their status as each other's largest trading partners [6].

2. Missing context/alternative viewpoints

Several important contextual elements are absent from the original question:

  • The geopolitical implications of the tariff changes - the agreement helped avoid a broader trade war between the world's two largest economic blocs [7]
  • Industry-specific impacts - while most goods face the 15% baseline, critical sectors like automotive, pharmaceuticals, and semiconductors have specific arrangements [1]
  • The European Green Deal's influence on trade dynamics, as the EU's transition to renewable energy affects global energy markets and trade relationships [7]
  • The temporary nature of some arrangements - the EU's six-month delay on retaliatory tariffs suggests ongoing negotiations and potential future changes [2]

Beneficiaries of different narratives include:

  • US manufacturing sectors benefit from the steel, aluminum, and copper tariff protections remaining at 50%
  • EU exporters benefit from the reduced baseline rate compared to threatened 30% tariffs
  • Both governments benefit politically from avoiding a full trade war while maintaining some protectionist measures

3. Potential misinformation/bias in the original statement

The original question contains an implicit assumption that may be misleading - it presupposes the existence of a specific "2020 trade agreement" without acknowledging that:

  • The agreement appears to be more of an executive arrangement rather than a comprehensive formal trade deal, as evidenced by the executive orders modifying tariff schedules [5]
  • The timing and nature of the agreement may be more complex than a single 2020 event, with ongoing negotiations and temporary measures like the EU's six-month tariff delay [2] [3]
  • The question frames tariff changes as bilateral when the executive orders actually address "certain trading partners" more broadly, suggesting a multilateral approach [5]

The framing could benefit those who want to present US-EU trade relations as more formalized and stable than they actually are, potentially serving both US and EU political leaders who need to show progress on trade issues to their respective constituencies.

Want to dive deeper?
What were the main provisions of the 2020 USA EU trade agreement?
How have USA and EU tariff rates affected the global economy since 2020?
Which industries have been most impacted by USA EU tariff rate changes since 2020?
What role did the World Trade Organization play in shaping the 2020 USA EU trade agreement?
How do current USA EU tariff rates compare to those before the 2020 trade agreement?