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Who are the winners and losers in US-EU trade deal?

August 21, 2025

The US and EU have established what is being called the largest trade deal in history, following talks in Scotland last month. Under the agreement, the US will impose a 15% tariff on goods imported from the EU, which is less severe than initially feared but still represents a significant trade barrier. The deal includes reduced tariffs on EU cars imported to the US (from 27.

Who is affected

  • EU exporters, particularly German automakers (VW, Mercedes, BMW)
  • European pharmaceutical companies
  • US consumers who may face higher prices on EU goods
  • US automakers competing with European manufacturers
  • European energy consumers who will receive more US energy
  • Aircraft and component manufacturers whose products will be tariff-free
  • US government receiving increased tax revenue from tariffs

What action is being taken

  • The US is implementing a 15% tariff on most EU imports
  • The EU is reducing tariffs on US-made cars from 10% to 2.5%
  • The EU is committing to purchase $750 billion in US energy, including LNG, oil, and nuclear fuels
  • The EU is increasing overall investment in the US by $600 billion
  • The EU is seeking additional "zero-for-zero" tariff agreements for wines and spirits

Why it matters

  • This represents the largest trade deal in history between two major economic powers
  • The agreement could impact EU GDP by approximately 0.5% according to Capital Economics analysis
  • The deal will generate tens of billions of dollars in import taxes for US coffers
  • The tariff changes could affect pricing and competitiveness across multiple industries
  • The energy component deepens Europe's energy security ties to the US as it moves away from Russian gas
  • Stock markets in Asia and Europe rose following news of the deal framework
  • The agreement reveals potential divisions within the EU, with some member states criticizing the terms

What's next

  • The deal will need to be signed off by all 27 members of the EU, each with different interests and levels of reliance on US exports
  • The EU hopes to secure additional "zero-for-zero" tariff agreements for wines and spirits in the coming days

Read full article from source: BBC