BDI President: Implement US Trade Deal - EU-US trade deal at risk as new tariffs spark fresh tensions

Trade tensions between the EU and the US have flared up again after a new round of tariff announcements. The dispute centres on a 2025 agreement that limited duties on EU imports to 15%, but recent US policy shifts have put the deal at risk. German industry leaders are now urging swift action to avoid further economic disruption.

In July 2025, the US government under then-President Donald Trump reached an agreement with European Commission President Ursula von der Leyen. The deal capped tariffs on most EU imports at 15%, a significant reduction from previous rates of 30 to 40% on cars, steel, and aluminium. The EU responded by suspending its planned countermeasures until August 2026.

Recently, however, the US Supreme Court struck down parts of the earlier tariff policies. In response, the current US administration announced a temporary 15% tariff on all global imports for up to 150 days. This move has left the EU questioning whether the original agreement still holds.

Peter Leibinger, president of the Federation of German Industries (BDI), has called for the European Parliament to ratify the 2025 deal without delay. He warned that failing to do so would create more uncertainty for German manufacturers. Leibinger also acknowledged progress in reducing the number of products facing high tariffs but stressed that negotiations must now intensify.

Meanwhile, Bernd Lange, chair of the European Parliament's Trade Committee, has suggested pausing the tariff deal's implementation. He cited concerns over legal clarity and stability. German Chancellor Merz is now planning a joint EU delegation trip to Washington to address the issue directly.

The EU must decide whether to uphold the 2025 tariff agreement or suspend it in light of the US policy shift. German industry leaders are pushing for quick approval to prevent further market instability. The outcome will depend on negotiations in the coming weeks.