The Explainer Is the EU-US tariff deal the best we could do?
Jul 30, 2025
Dr. Emma Howard, an economist and lecturer at TU Dublin, dissects the recent EU-US tariff deal, revealing its complex implications for international trade. She discusses the significant tariffs impacting vital sectors like pharmaceuticals and whiskey, highlighting the asymmetrical benefits favoring the US. Emma also examines the reliability of trade partnerships and internal EU conflicts affecting negotiations, while assessing the broader impact on consumer prices and economies on both sides of the Atlantic.
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Uncertain Stability of Tariff Deal
- This tariff deal brings some certainty to businesses but lacks full clarity and might not last due to Trump's unpredictable actions.
- The agreement is in principle with conflicting details emerging from both the EU and US sides.
Major Tariff Increase For EU Goods
- Most EU goods will face a 15% tariff entering the US, a big increase from the previous 1.4% average tariff.
- Conflicting reports exist about tariff exemptions on pharma and aviation, adding to uncertainty for exporters.
Asymmetric Deal and Unrealistic Energy Goals
- The deal is asymmetric: the EU faces tariffs on its exports while the US largely avoids tariffs on theirs.
- EU commitment to massive US energy imports is unrealistic and conflicts with EU green goals.