USA IMPLEMENT NEW SECTION 301 TARIFF REGIME FOR EU EXPORTS
On 24 July, the United States introduced a new tariff regime under Section 301 of the Trade Act, replacing the temporary Section 122 measures that had been in force since April. The new tariffs apply to imports from 60 trading partners, including the European Union.
According to Reuters, the new measures appear more favourable for EU exporters than initially expected. Unlike the approach taken for many other trading partners, the additional Section 301 duties for EU goods generally do not stack on top of existing US Most Favoured Nation (MFN) tariffs. Instead, for many products, the mechanism limits the overall tariff level, resulting in a lower effective duty than many businesses had anticipated following the 2025 EU-US Turnberry agreement. The European Commission welcomed the US implementation, stating that it is consistent with the political understanding reached between both sides and provides greater certainty for European exporters.
Despite this positive development, uncertainty remains. The US continues to pursue a number of trade investigations, including a separate Section 301 investigation into alleged structural overcapacity involving the EU and several other major trading partners. The investigation covers sectors such as steel, aluminium, automotive products, batteries, semiconductors, solar panels, and chemicals, and could lead to additional trade measures in the coming months.