U.S. Updates Tariff to Reflect EU Framework Agreement

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Sep. 25, 2025
By: Chaney A. Finn

As many regular readers will remember, in August the United States and European Union announced a “framework agreement” to regulate trade between the entities. However, the details and implementation of the agreement were hard to discern. However, according to a Federal Register notice much of the agreement is now ready to be implemented.

The notice gives details to some modifications that are retroactive to August 1 while others take effect on September 1. The August 1 changes have to do with the application of duties to European motor vehicles and parts. The September 1 changes are mostly related to raw materials not available in the United States, articles for civil aviation use, and pharmaceutical use. Some of these revisions were discussed in previous notices on reciprocal tariffs.

Effective August 1:

• Vehicles with MFN tariffs over 15%: No reciprocal tariff (subheading 9903.94.50).
• Vehicles with MFN tariffs under 15%: Flat 15% tariff, including reciprocal rate (subheading 9903.94.51).
• Auto parts: Same treatment under subheadings 9903.94.52 and 9903.94.53.

Effective September 1:

• Over 200 subheadings (covering various natural resources along with a small number of manufactured goods): Exempt from reciprocal EU tariffs (subheading 9903.02.74).
• Essential oils (non-citrus, for religious use): Tariff-free (subheading 9903.02.75).
• EU civil aircraft and parts: Duty-free under 9903.02.76.
• EU pharmaceutical products: Exempt from tariffs under 9903.02.77 (covers 779 subheadings).

The tariff revisions take effect on or after 12:01 a.m. Eastern daylight time of the effective date. Should you have any questions regarding tariffs, or have any other trade-related questions, do not hesitate to contact any attorney at Barnes Richardson and Colburn.