Under the deal, the US will apply a single, all-inclusive tariff ceiling of 15% on nearly all EU goods starting Aug. 1. This includes sectors previously subject to significantly higher tariffs, such as cars and car parts, which currently face combined tariffs of up to 27.5%. Strategic EU exports — including aircraft and parts, select chemicals, and certain generics — will see US tariffs rolled back to pre-2025 levels. The EU will liberalize limited volumes of trade in areas of mutual interest, cutting roughly €5 billion in duties annually on US imports while maintaining protection for sensitive EU sectors. The European Commission said the agreement protects EU regulatory sovereignty and preserves sensitive areas of agriculture, including beef and poultry.