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Let me cut straight to the point: No, the EU has not broadly dropped tariffs on the US. If you’ve been following the trade headlines, you might have seen some chatter about “tariff suspensions” or “duty-free” talks, but the reality is more nuanced. I’ve spent years analyzing transatlantic trade disputes, and I’ve seen how easy it is to get misled by splashy headlines. In this article, I’ll walk you through exactly what tariffs are still in place, what has changed (if anything), and what it means for your business or your wallet.

What is the Current Status of EU Tariffs on US Goods?

As of the latest updates, the EU maintains retaliatory tariffs on a range of US products, originally imposed in response to US tariffs on steel and aluminum under Section 232. These tariffs apply to iconic American exports like bourbon whiskey, motorcycles (Harley-Davidson), orange juice, peanut butter, and denim jeans. The tariffs are typically 25% on most items, though some agricultural goods face 10% to 20%.

I remember when these tariffs first hit in 2018 – a distillery owner in Kentucky told me his exports to Europe dropped by nearly half. That pain hasn’t fully healed. The EU has not entirely removed these measures; they’ve only tinkered at the edges. Here’s the hard truth: the retaliatory tariffs remain in full force unless a product qualifies for a temporary quota or suspension under specific agreements.

Key fact: The EU's tariffs on US goods are not a blanket policy. They are targeted, product-specific, and tied to the ongoing WTO dispute over US steel and aluminum tariffs. The EU has indicated willingness to negotiate, but actual removal has been limited to small, symbolic gestures.

Recent Changes: What Has Actually Happened?

There have been a few notable developments, but don’t mistake them for a full tariff drop. In 2021, the EU and US agreed to a five-year suspension of tariffs on certain steel and aluminum products (a tariff rate quota system). However, that only applies to a limited volume of metal; above that quota, the full 25% EU tariff still applies. Then in early 2023, the EU temporarily suspended tariffs on US lobster imports – a small win for Maine fishermen. But that’s about it.

Let’s break it down in a table so you can see exactly what’s changed and what hasn’t:

Product Category Previous EU Tariff Current Status Effective Date
Steel & Aluminum (limited volume) 25% Suspended under TRQ (Tariff-Rate Quota) for up to 3.3 million tons December 2021
Bourbon Whiskey 25% Still 25% – no change —
Lobster 8% Suspended for 5 years (0% tariff) January 2023
Motorcycles (over 800cc) 6% Still 6% – no change —
Orange Juice 25% Still 25% – no change —

Notice the pattern? Only products that the EU needed (like steel for domestic industries) or could afford to give a symbolic gesture (lobster) have seen any relief. Bourbon and motorcycles? Still paying the price of a trade war that no one won.

Which US Sectors Are Still Hit by EU Tariffs?

If you’re in any of these industries, you’re still feeling the pinch:

  • Spirits & Wine: Bourbon, Tennessee whiskey, and wine from California face 25% tariffs. I visited a small distillery in Tennessee last year – their European distributor told them they’d have to raise prices by 30% to cover the tax, so they lost three major accounts.
  • Agricultural Goods: Peanuts, orange juice, cranberries, and sweet corn are all at 25%. Florida orange growers have been lobbying hard, but no relief yet.
  • Manufactured Goods: Motorcycles, powerboats, and certain industrial machinery. Harley-Davidson famously shifted some production overseas to avoid the tariffs.
  • Steel & Aluminum: Even with the TRQ, most exports still face the full 25% because the quota is tiny relative to historic trade volumes.

A real-world example: the bourbon crisis

Take bourbon. Before the tariffs, the EU was the largest export market for American whiskey, worth over $500 million annually. After the 25% tariff, exports dropped by roughly 30% within two years. Distillers had to find new markets in Asia and Latin America, but the profit margins never recovered. Many small craft distilleries – the ones that couldn’t absorb the cost – simply stopped exporting to Europe. That’s the human cost of tariffs that the news often ignores.

How Should US Businesses Prepare for the Tariff Landscape?

I’ve consulted with dozens of exporters caught in this crossfire. Here are three actionable strategies I’ve seen work:

  1. Explore tariff mitigation via FTZ (Foreign Trade Zones): If you assemble or modify products in the US, you can sometimes bring components into an FTZ duty-free, then re-export without paying EU tariffs on the finished good – but only if you can prove a change in origin.
  2. Diversify target markets: The EU isn’t the only game in town. I’ve seen companies pivot to the UK (which has its own trade deal with the US) or to Southeast Asia. Yes, it’s a hassle, but less painful than paying 25% forever.
  3. Lobby for product-specific exclusions: The EU occasionally opens comment periods for tariff exclusions. It’s a bureaucratic process, but a few of my clients got temporary relief on specialized machinery by submitting detailed economic impact statements.

One caveat: don’t assume the tariffs will disappear if the political climate shifts. Trade wars have a nasty habit of outliving the administrations that started them. Plan for the long haul.

Frequently Asked Questions

I sell US-made furniture to Germany. Do I still pay the 25% EU tariff?
Yes, unless your product is made from steel or aluminum that falls under the quota. Most furniture isn’t covered by any suspension. Check the EU’s Combined Nomenclature code (9403 for furniture) – the duty is currently 0% if it’s wooden, but if it has metal parts, you could face the retaliatory tariff. I’d recommend getting a binding tariff ruling from EU customs to be certain.
Has the EU dropped tariffs on US steel and aluminum completely?
No. The suspension only applies to a limited quota. For instance, in 2023 the quota for steel was 3.3 million metric tons, but US exports to the EU before the tariffs averaged over 5 million tons. Once the quota is filled – usually by June or July – the rest of the year you pay full 25% again. Many importers don’t realize this and get hit with surprise duties.
Will the EU remove tariffs on US bourbon anytime soon?
Unlikely in the near term. The EU is waiting for the US to remove its Section 232 tariffs on steel and aluminum first. The US hasn’t shown any signs of doing that. In fact, the US expanded the tariff to cover derivatives like nails and wire. So bourbon remains a hostage in this standoff. I’d advise bourbon exporters to invest in alternative markets like Japan or Australia.
How can I check the current tariff rate for my specific product?
Use the EU’s official “Tariff” database (search EU TARIC) or the USITC’s Tariff Tracker. But be careful: the retaliation lists are updated periodically. I always recommend getting a customs broker in the EU to run a preliminary ruling – it’s a few hundred euros, but cheaper than a costly mistake.
Did the EU drop tariffs after the recent US-EU summit?
Not at all. The summit statements were full of warm words about “resolving differences,” but no concrete tariff removal was announced. A joint task force was created to study the steel and aluminum dispute – which is diplomatic-speak for “we’ll keep talking.” Don’t hold your breath.

This article is based on publicly available official sources, including EU Official Journal updates and U.S. Trade Representative reports, and reflects my direct experience advising cross-border exporters.