With the EU and US finally arriving at a deal on trade and tariffs, here's a brief recap of how they reached this point.
March 12: Trump implements extensive 25% taxes on steel and aluminum
The announcement echoes Previous actions of US President Donald Trumpsince his initial tenure in office.
The European Union (EU) quickly begins developing responses against US imports. It particularly focuses on essential American items such as bourbon and motorcycles, and initially intended to target goods valued at €26 billion from the United States.
The European Union continues to argue that the US tariffs are unwarranted. In a statement released on March 12, Trade Commissioner Maros Sefcovic stated: "EU-US trade relations are currently in good balance, and are highly beneficial to both parties."
Trump appears especially upset about what he refers to as "a harsh 50% Tariff on Whisky" in a message on his social media platform, Truth Social. He further describes the EU as "one of the most unfriendly and exploitative tax and tariff agencies in the world."
March 25: EU imposes restrictions on steel imports
To provide some safeguard for the block's metal producers, the EU imposes a cap on the amount ofsteel that can be brought into the block without tariffsfrom any location, not only the United States.Furthermore, nations seeking to export steel into the EU will no longer be allowed to utilize the full amounts of unused quotas from other countries, such as those of Russia and Belarus.
March 26: Trump introduces a 25% tax on vehicle imports
Trump defends the extensive tariffs as a reaction to "a significant threat to US national security."
The decision sparks concern among European Union nations that have significant automobile sectors, like Germany. The EU expresses disappointment, but Commission President Ursula von der Leyen states that the group will "keep looking for negotiated solutions."
April 2: "Day of Liberation" duties
Donald Trump proclaims April 2nd "Liberation Day" in the United States and unveils tariff rates for nations globally, as well as a base rate of 10% that comes into effect three days later. The EU faces a 20% general tariff, set to begin on April 9.
The The EU describes Trump's action as a "significant setback for the global economy"and claims it is "not too late" to engage in discussions. Nevertheless, von der Leyen states that the group is getting ready for another set of retaliatory tariffs following the recent events.
April 2: Trump suspends increased tariffs for 90 days
Treasury market declines seem to unsettle the US president, and he changes direction.
April 10: EU suspends its retaliatory tariffs
Counter-tariffs brewed up to Comment on the temporary halt of US steel and aluminum tariffs for 90 days.The suspension aims to "provide negotiations an opportunity," states Commission head von der Leyen. "If the discussions do not meet our expectations, our response actions will begin."
May 8: EU introduces additional set of retaliatory tariffs
The EU's upcoming set of duties aims to address US tariffs on vehicles and Trump's wider "reciprocal" tax measures. The retaliatory tariffs proposed by the European Commission cover nearly $100 billion worth of products that appearintended to target Republican strongholds in the United States.The items in focus are soybeans, cigarettes, and Boeing planes.
May 23: Trump warns the EU about a 50% tax
The American president once again causes surprise throughout Europe with a social media update on his Truth Social account,hiking the proposed tariff rate from 20% to 50%.
"They aren't making any progress in our talks! So, I'm suggesting a direct 50% tax on the European Union, effective June 1, 2025," he writes.
May 26: Trump agrees to postpone the increase in tariffs
In a post on his Truth Social platform, Trump states that it was his "privilege" to agree topostpone the implementation of the so-called mutual tariffs.
The atmosphere appears more positive, with von der Leyen mentioning a "good call" with the U.S. president. "Europe is prepared to move discussions forward quickly and firmly. To achieve a favorable agreement, we would require until July 9," she states on X.
June through mid-July: EU and US teams conduct trade discussions aiming to reach an agreement
EU countries are divided on whether to approve a faster agreement toprovide industries with some stability or increase trade flexibilityto advocate for improved rates. Germany is viewed as more cautious, concerned about the consequences for its major automotive sector. France supports a more stringent stance.
July 9: EU indicates it is nearing a deal
EU representatives informed Zaia News and other media outlets that they are nearing a preliminary agreement with the US. The minimal deal is said to establish a 10% base tariff rate, with specific exceptions for aircraft and alcoholic beverages.
July 12: Trump shocks the EU with a declaration of a 30% tax rate
But only a few days later, there is no agreement. Instead,Trump states he plans to implement 30% tariffs on the group starting August 1.That exceeds the 20% "Liberation Day" rate mentioned in April, yet is less than the 50% rate previously warned about in May.
July 13: EU suspends retaliatory tariffs
The European Union responds to Trump's threat of increased tariffs by postponing its own retaliatory tariffs until early August. Tariffs that were scheduled to take effect on July 14 have been delayed to create space for discussions.
July 15: EU completes a weakened set of retaliatory tariffs
The European Commission presents member states with arevised version of the responsibilities initially presentedto member states in May. Over the past two months, following the EU's executive body's proposal of the goods list, approximately €20 billion worth of items have been taken off the list after discussions with national governments and industry representatives.
July 15: "A fair 50-50 possibility"
Before the meetings in Scotland, Trump stated there is "a good 50-50 chance" of achieving a trade agreement with the EU.
July 27: The European Union and the United States finalize an agreement
A uniform 15% tax rate has been set for the majority of EU exportsacross industries. The two parties also reached an agreement on zero-tariff policies for specific strategic items, and "will continue to work on expanding the list of products," stated Commission President Ursula von der Leyen in a statement.
Although the EU aims for "stability" and "predictability," Trump appears content with the talks, stating, "It was a very intriguing discussion. I believe it will be beneficial for both sides."
For the time being, the trade conflict has been prevented, but it is uncertain whether the ceasefire will last.
Edited by: Carla Bleiker
Author: Martina Domladovac