The EU has negotiated a deal with the USA. However, many countries outside the EU in the EMEA bloc have not been so fortunate and it is still an ever-changing landscape
EU
The EU deal sees a ceiling for tariffs on mot imported EU goods set at 15%. Some products such as aircraft and aircraft parts, certain chemicals, drugs genetics and natural resources will be reduced to the tariff before President Trump was elected.
There will be a tariff quota for steel, aluminium and copper from the EU to the US and vice versa. However, it remains to be seen as to whether the additional charges on imports under the Carbon Border Adjustment Mechanism cause the US administration to think again on products made from iron, steel and aluminium
In return for this, US companies will have greater access to the EU market for products such as soya bean oil, planting seeds, grains or nuts , as well as processed foods such as tomato ketchup, cocoa and biscuits under special tariff rate quotas (“TRQ”s). Again, it remains to be seen whether the administrative burden under the EU’s Deforestation Regulations on items such as soya, cocoa etc makes the US administration think again.
Europe excluding the EU
Tariff rates range from 15% to 39%. Most of the EEA countries (Norway, Iceland, Switzerland and Lichtenstein) have a tariff rate of 15% in line with the EU, with the exception of Switzerland, which has a rate of 39%.
Middle East
Middle Eastern states face tariffs from 10% (United Arab Emirates and Saudi Arabia) to 41% (Syria). However, escalation of tensions in the middle east could see financial sanctions including tariffs, especially for Israel if no ceasefire is forthcoming over the Gaza Strip.
Africa
African states face tariffs mainly at 15% with exceptions being Libya (30%), Tunisia (25%), Algeria (30%) and Mozambique (25%).
Tariff planning
Despite the deal negotiated by the EU and other states in the EMEA region, it may still be more cost effective to have goods processed in the UK before shipping to the US.
By far the largest exports to the USA are medicinal and pharmaceutical products (nearly €80 Bn in 2024). With threats from the US of additional tariffs on this group of products, manufacture of drugs may shift to places like the UK, which already has the facilities to manufacture such products could save approximately €50,000,000 in tariffs if the UK and EU differential remains at 5%. Such a figure could see an uplift in this industry in the U without the EU companies needing to make huge investment, unlike setting up in the USA.
