The minimal agreement reached between the European Union and the United States has averted a full-blown trade war—but the fine print reveals an uneven landscape for European industry. The defining characteristic of the deal is its clear lack of reciprocity: the new, higher tariffs are mostly imposed by the US on European products, while, with few exceptions, American goods will continue to enter the EU under previously low tariff rates. This imbalance is key to understanding which sectors in Europe come out ahead—and which ones lose.
The big losers: steel and agri-food sectors
The most negatively affected industries are those that directly compete with sensitive sectors in the US.
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Steel and Aluminum: Europe’s steel industry is the main sacrificial lamb. The agreement enforces a punitive 50% tariff on these products. This move, which continues the protectionist agenda of the Trump administration, aims to shield US producers from European competition—at the expense of an industry that employs thousands across the continent.
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Gourmet agri-food Products: Iconic staples of European cuisine are facing tariffs of up to 25%. Products like French and Spanish wines, Italian olive oil, and protected-designation cheeses will become significantly more expensive in the US market. It’s a direct blow to thousands of SMEs and rural economies, designed to benefit producers in US states like California.
Automotive: A mixed outcome with a glass ceiling
The European car industry finds itself in a middle ground. A general 15% tariff on vehicles is a negative development, representing a significant increase compared to the previous situation. However, for major German, Italian, and French automakers, it’s the lesser of two evils compared to the looming threat of a 30% tariff—which would have been devastating.
Still, the 15% rate acts as a glass ceiling: it limits the competitiveness of European cars against those made in the US or countries with free trade agreements (like South Korea or Japan). In practical terms, it caps the market share European manufacturers can aspire to in the US—keeping a key industrial rival in check.
The winners: aerospace and pharma catch a break
It’s not all bad news. The agreement establishes mutual zero tariffs for certain strategic sectors where cooperation benefits both parties.
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Aerospace: The full exemption of tariffs on civilian aircraft and components is a major relief for Airbus and its European supply chain. It reflects the deep interdependence between Airbus and its rival Boeing, where a tariff war would have hurt both sides equally.
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Pharmaceuticals: Medicines and pharmaceutical products are also exempt. It’s a pragmatic choice aimed at avoiding disruptions to a trade that’s essential for the health and wellbeing of citizens on both sides of the Atlantic.
A deal tailored to US interests
The sectoral breakdown of the agreement reveals a very deliberate strategy by Washington. It’s a custom-made deal that protects sensitive US industries (like steel), weakens the competitiveness of Europe’s most iconic exports (like agri-food), contains its biggest industrial rival (automotive), and preserves free trade only in areas of deep mutual dependence (aerospace and pharma).
For European companies, the message is clear: a truce may have been signed, but the rules of the game are now, more than ever, dictated by “America First.”
Sources:
- El País: Claves del acuerdo comercial entre EE UU y la UE: Bruselas acepta un arancel del 15% a todos sus productos
- Associated Press: EEUU y la UE establecen arancel del 15% sobre la mayoría de los bienes y evitan guerra comercial
- Financial Times: Winners and losers: A sector-by-sector analysis of the new US-EU trade truce
- Politico Europe: Carmakers breathe sigh of relief, farmers cry foul over US trade deal
- Comisión Europea: Statement by President von der Leyen on the deal on tariffs and trade with the United States
