Currently articles of the E.U. are subject to Reciprocal Tariffs that will adjust the MFN rate up to 15% for all goods. If the MFN rate is already over 15%, then there will be no additional reciprocal tariffs added.

A Framework Agreement was announced that included changes to address trade barriers and achieve mutually beneficial trade relations. As for its effect on tariffs, starting September 1st, the U.S plans to ensure the reciprocal and 232 tariffs do not exceed a rate of 15% for the following articles of the E.U: Unavailable natural resources (including cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors.

Section 232 Tariffs for automobiles and automobile parts will not exceed 15% when added to MFN rates, while 232 for all other articles including steel, aluminum, and copper will continue to be negotiated.

Note: MFN Rate stands for Most Favored Nation Rate and can be found in column 1 of the HTSUS. Therefore, it is also referred to as “Column 1”, “General Rate”, or “Normal Trade Relations Rate”(NTR).