New EU-US trade agreement takes effect

A new trade agreement between the European Union and the United States came into force on July 1, 2025, following its final approval by the European Parliament. The deal was finalized during the Cypriot presidency of the Council of the EU. Starting July 1, 2026, many US industrial and agricultural products will be imported into the EU without tariffs, provided they meet existing health and safety standards. Conversely, most European goods entering the US will be subject to a 15% tariff. The agreement was reached under pressure, as the US administration previously threatened to impose much higher tariffs of up to 30%. Critics argue the deal is imbalanced and may exacerbate the trend of deindustrialization within the EU. Proponents view it as a necessary compromise to prevent a broader global trade war.