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EXPLAINER-How do the US trade deals reached by the EU and UK compare?
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EXPLAINER-How do the US trade deals reached by the EU and UK compare?
Jul 28, 2025 8:32 AM

LONDON, July 28 (Reuters) - The European Union and the

United States announced a tariff deal on Sunday that will see

most EU exports face a 15% tariff, nearly three months after

Britain locked in a 10% baseline tariff rate.

EU leaders have said their deal offers more certainty given

the threat of higher U.S. tariffs from August but some

politicians have criticised it as "unbalanced" and worse than

Britain's deal.

The details of the two deals paint a more complicated

picture than the headline figures suggest, and not all the small

print of the EU deal has been confirmed.

Here is a comparison of what we know about the two deals.

BASELINE TARIFFS

The EU has agreed a 15% baseline tariff for most of its

exports to the United States. While this is lower than a rate of

up to 30% previously threatened by U.S. President Donald Trump,

it is higher than the baseline tariff rate of 10% which applies

to British exports.

However, under the EU deal, 15% is the maximum tariff, and

isn't added to any existing rate. For Britain, the 10% base rate

is in addition to the "most-favoured nation" (MFN) rates that

the U.S. applies as a minimum to specific goods imports from all

its trade partners, so the effective tariff rate is often

higher.

For instance, the UK Fashion and Textile Association has

highlighted that certain luxury products face an MFN tariff of

around 35% in the U.S., despite a "baseline" rate of only 10%.

PHARMACEUTICALS

The U.S. is to announce the result of its so-called Section

232 trade investigations into certain sectors in a few weeks and

decide on tariff rates.

The EU-U.S. deal already determines a 15% tariff for

European pharmaceuticals, and the results of the investigations

will not change that, U.S. officials said.

In its deal with Britain, the United States said it would

negotiate "significantly preferential treatment outcomes on

pharmaceuticals", contingent on the outcome of the 232

investigations.

Asked if Britain would be impacted by tariffs on the

pharma sector in August, Trump said that he could deal with

Britain on pharma and he didn't think the sector would be a

"block" in talks.

In the meantime Britain faces no tariffs for its

pharmaceuticals. Britain also pledged to try to improve the

overall environment for pharma firms operating in the country,

but it is tussling with multinationals over drug pricing.

STEEL

Tariffs on EU steel and aluminium exports will stay at 50%,

but von der Leyen said these would later be cut and replaced by

a quota system.

British steel and aluminium exports face a 25% tariff in the

United States, which both sides have agreed will go down to zero

once talks over quotas and supply chains are concluded.

Those talks have stalled over "melted and poured" rules

about where the steel originates and how it is processed.

Britain's Tata Steel has imported steel from India and the

Netherlands after shutting blast furnaces last year, so Britain

is seeking an exemption from a U.S. demand that steel needs to

be "melted and poured" in Britain to qualify for lower tariffs.

AUTOS

Car exports from the EU to the U.S. face the baseline tariff

of 15% in the deal struck on Sunday. While full details have not

been published, neither side mentioned a quota for the number of

cars covered by the rate.

Britain has negotiated a lower tariff of 10% for its car

sector but it also has a 100,000-vehicle quota which leaves

little room for export growth. Above that quota, British car

exports face a tariff of 25%.

AEROSPACE

The EU will face no U.S. tariffs on aerospace exports,

pending the outcome of a Section 232 probe into the sector.

Britain also has no tariffs on its aerospace sector after

its deal with Washington reduced them from 10%.

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