The agreement reached between the EU and the USA on July 29, 2025 has settled the tariff dispute for the time being - albeit under painful conditions for the electrical and digital industry. According to a statement by EU Council President Ursula von der Leyen, an agreement has been reached with the US government on a uniform tariff rate of 15% for the majority of EU exports. This includes the automotive, pharmaceutical and semiconductor sectors, among others. Furthermore, zero-for-zero tariffs were agreed for several strategic products, including all aircraft and aircraft parts, individual chemicals, generics and agricultural products, renewable and critical raw materials and semiconductor equipment. The EU pledged to increase its purchases of liquefied natural gas, oil and nuclear fuel from the US. Furthermore, the computing power of AI chips from the US is intended to boost European AI gigafactories and help the US maintain its technological lead.
"Fatal signal to the closely intertwined economy on both sides of the Atlantic"
There was clear criticism from German associations. Wolfgang Niedermark, BDI, described the tariff agreement as a "fatal signal to the closely intertwined economy on both sides of the Atlantic". ZVEI Managing Director Sarah Bäumchen also said the 'deal' with the USA was "no cause for celebration". For many companies in the medium-sized electrical and digital industry, the 15% tariff is "a burden for transatlantic trade". According to Sarah Bäumchen, the agreement should be seen as a starting signal for further negotiations that "aim to achieve the lowest possible tariffs for the entire economy".
Bertram Kawlath, President of the VDMA since October 2024, described the flat tariff rate for machinery imports to the United States as an unfortunate development that will be a particular burden for American manufacturers. The VDMA urged the EU and the US not to see the agreement as a 'new normal', but to turn a corner "away from the dead end of escalating tariffs and trade barriers that undermine prosperity and hinder innovation."
