United States vs. European Union: differences in tariffs and impact on the supply chain

MyTower

Against a backdrop of growing trade tensions, tariffs between the United States and the European Union (EU) are back at the center of the global economic debate. Understanding their structural differences and recent policies is essential for companies active on international markets.

Structural differences between the US and the EU

  • The USA applies mainly ad valorem customs duties, i.e. a percentage calculated on the value of the goods. Most rates vary between 0% and 35%, with an average close to 3-4%. This figure should be treated with caution, as it does not take into account recent exceptional increases in USITC duties. The calculation is based on the Harmonized Tariff Schedule (HTS).
  • The European Union, on the other hand, applies an import tax combining customs duties and import VAT, which increases the final cost of products. However, this VAT should not be equated with customs duties, as it is a tax on consumption, but the fact that it is levied when products are released for consumption gives the impression across the Atlantic that it is a disguised duty. The average rate of conventional customs duty is around 5.2%, with wide disparities between categories. Access2markets

Customs revenue is also a major source of EU funding, accounting for almost 14% of the EU budget Taxation_customs.

The new transatlantic agreement

In July 2025, the USA and the EU concluded a framework agreement to avoid an open trade war. The key points are:

  • The United States will apply a minimum tariff of 15% on most European products(AP News).
  • In exchange, the EU will eliminate tariffs on US industrial products and apply tariff reductions to certain agricultural products. Please note: this agreement is political, not legal, as the European Parliament and member states have yet to vote on its application.
  • The most sensitive case remains that of European cars, currently subject to a 27.5% tariff in the US, with a possible reduction to 15% retroactively but only if the EU implements the Trump/Von Der Leyen Reuters agreement.

Strategic sectors such as wine, spirits, steel and aluminum are still under negotiation(Times of India).

Impact on businesses and consumers

  • For European exporters, the new tariffs put additional pressure on their margins(Hub Brussels).
  • For American consumers, this means higher prices and a more limited range(AP News).
  • What's more, the USA has abolished the $800 de minimis exemption, which directly impacts small exporters and platforms like Etsy, for example, while a large number of non-US postal services have stopped sending packages to the USA(The Times).

Useful resources for companies

Companies seeking to adapt to this context can rely on :

Conclusion

A comparison between the USA and the EU reveals not only technical differences in the application of customs duties, but also a strategic battle for global competitiveness. Companies able to anticipate these developments and adapt their international logistics will be better prepared to protect their profitability and secure their place in transatlantic trade.

Article written by our Consultant and Expert in International Trade, Jean-Marc Vandenbussche

Discover our Global Trade Management offers





NEWS

These articles may be of interest to you

EUCA in Lille: The New Revolution in European Customs
April 20, 2026 by MyTower

EUCA in Lille: The New Revolution in European Customs

In late March, a decision of great importance for the future of European customs went largely unnoticed outside specialist circles, due to the focus of international news on

Read more
MyTower acquires TDI, Winddle, and e-SCM Solutions to build a leading European player in supply chain management
April 15, 2026 by MyTower

MyTower acquires TDI, Winddle, and e-SCM Solutions to build a leading European player in supply chain management

The French supply chain software provider MyTower is accelerating the consolidation of the European market for software solutions dedicated to customs transport and trade compliance.

Read more
Preferred outcome: the end of paper, not of rigor
March 31, 2026 by MyTower

Preferred outcome: the end of paper, not of rigor

For a long time, the proof of preferential origin had a familiar form: a paper document, endorsed by the customs authority, complete with its boxes, signatures, and stamps, and, in the event of

Read more