A new US-EU trade deal imposes a 15% tariff on most EU imports, down from the proposed 30%, and excludes aircraft, pharmaceuticals, some chemicals, and agriculture. Steel and aluminum continue to face separate tariffs.
The EU committed $600B in U.S. investments and $750B in future energy purchases, potentially driving growth in military, energy, and infrastructure projects.
The deal aims to stabilize economic ties, as there was $975.9B in total US-EU trade in 2024 and a growing trade deficit.
The United States and European Union agreed on July 27, 2025, to impose a 15% tariff on most EU goods imported into the US. For contractors and construction professionals, the US-EU trade deal is a development that could affect supply chains, construction material prices, and market opportunities.
The 15% tariff on imports is down from the initially threatened 30%. Key exceptions include no tariffs on aircraft and plane parts, pharmaceuticals, certain chemicals, and some agricultural products.
Construction materials are not exempt, which may impact project input costs of those materials imported from the EU. Steel and aluminum continue to face separate tariffs, now at 50%, even under the new trade agreement.
ConstructConnect News reported earlier in July that, “The construction sector is particularly exposed given its dependence on tariff-affected materials. Canadian lumber, Mexican gypsum, and EU-sourced glass and steel are essential to nearly all segments of the industry.”
[Read How Tariffs on Canada, Mexico, and the EU Could Impact U.S. Construction].
The EU committed $600B in US investments and $750B in energy purchases, potentially driving future growth in military, energy, and infrastructure projects. Contractors could benefit from increased demand for site work, facilities construction, infrastructure projects, and retrofits.
The agreement was reached during negotiations between President Donald Trump and European Commission President Ursula von der Leyen in Scotland. Trump called it the “biggest deal ever made,” suggesting that it could help bring stability and predictability to trade between the two economies.
A chart of the US Trade with the EU shows that in 2024, US goods imports from the European Union totaled $605.8B, resulting in a trade deficit of $235.6B. Image: ConstructConnect, Data: Office of the US Trade Representative.
According to the Office of the US Trade Representative, in 2024, total goods traded between the US and the European Union reached an estimated $975.9B.
U.S. exports to the EU were $370.2B, a modest increase of 0.7% (or $2.6B) compared to 2023.
Imports from the EU totaled $605.8B, up 5.1% (or $29.4B) from the previous year.
As a result, the U.S. goods trade deficit with the EU grew to $235.6B in 2024, marking a 12.9% increase (or $26.9B) over 2023.
The full documentation of the agreement has yet to be made public. However, additional announcements related to the investment commitment and timeline are expected.
About ConstructConnect
At ConstructConnect, our software solutions provide the information construction professionals need to start every project on a solid foundation. For more than 100 years, our insights and market intelligence have empowered commercial firms, manufacturers, trade contractors, and architects to make data-driven decisions and maximize productivity.
ConstructConnect is a business unit of Roper Technologies (Nasdaq: ROP), part of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com