Understanding the nuances of the US-EU trade agreement—especially the recently established 15% tariff threshold—can help importers make informed decisions and effectively manage costs on new shipments. At The Chemical Company, we have worked collaboratively with both our internal and external partners in customer service, regulatory affairs, and customs to clarify the impact of the updated EU tariff rules. The key takeaway is that the 15% rate represents the maximum combined duty and tariff most importers should expect to pay on goods such as chemicals and raw materials brought into the US.
Let’s break this down further: When goods are imported, importers are typically required to pay both a duty and a tariff, each calculated as a percentage of the product’s value. In past trade scenarios, these costs were stacked—meaning new tariffs were added on top of existing duty rates. For example, a 10% baseline tariff could be added to an existing duty rate, which might range from 3.0% to 6.5% for chemicals.
The recent agreement, however, grants the EU a unique status. Instead of layering the new 15% tariff on top of duties, the 15% is a combined cap—meaning it serves as the total charge for most goods. For instance, if product ABC from the EU has an existing duty of 6.5%, the importer would pay only the difference (8.5%) as the tariff, bringing the total to 15%. This is distinct from the additive approach found in previous trade arrangements.
Of course, exceptions may apply depending on the specific product or situation. Therefore, The Chemical Company encourages all importers to consult with their customs professionals to ensure compliance and gain personalized advice. Overall, the special tariff arrangement between the US and EU offers importers a notable advantage over arrangements with other regions, where duties and tariffs are often combined in a less favorable way.
Above: The updated Annex I list of reciprocal tariffs by region, dated July 31, 2025 via whitehouse.gov. At the bottom, the updated European Union Duty / Tariff rate is mentioned.
Above: An example screenshot from the HTS database on the official USITC website. In this example, the current 6.5% Column 1 Duty would equate an “effective” tariff of 8.5%. The total combined Duty & Tariff for this HTS code would be 15%.
