Under the new U.S.–EU agreement, tariffs on most EU exports to the United States are capped at 15%, replacing the threat of higher rates.
The European Union is the United States' largest trading partner in goods and services combined, with bilateral trade exceeding $975 billion in 2024 according to the U.S. Trade Representative.
Supporters of tariffs argue they protect domestic manufacturing and generate revenue; critics argue they function as a tax paid largely by importers and consumers.
The Constitution grants Congress the power to levy tariffs, but Congress has delegated significant authority to the president through laws including the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.
The Tax Foundation estimated in 2025 that broad new U.S. tariffs would raise hundreds of billions in revenue over a decade while reducing GDP growth, though estimates vary by model.