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Business
Trump Tariffs: EU at 10% Like UK, British Advantages Erased in Multiple Sectors
Herz — Business Desk · · 30s summary · 3 min read
The essentials
Donald Trump announced on 23 July 2026 a new round of US tariffs reducing the general rate on European products from 15% to 10% — matching the UK's rate under its bilateral Economic Prosperity Deal (EPD) with Washington. This parity erases the tariff advantage London expected to hold, placing British companies at a disadvantage in sectors not covered by the EPD, such as clothing or beverages, facing a cumulative 22.5% tariff. Scottish whisky will benefit from zero duties, announced on 24 July 2026. The EU has declined to accept the principle of a US forced labour investigation.
- Trump cuts EU tariff from 15% to 10%, aligning with the UK deal rate.
- In non-EPD sectors, British clothing faces 22.5% tariffs vs 10% for EU goods.
- Scottish whisky gains zero duty, an advantage over Irish and French spirits.
- The EU rejects the principle of a US forced labour investigation.
- Up to 100% tariffs on medicines are planned, targeting Ireland, Germany and Belgium.
What We Know
Donald Trump announced on the evening of 23 July 2026 a new round of US tariffs. According to The Guardian, the announcement was made by Jamieson Greer, the US Trade Representative. The stated justification: combating countries that practice forced labour.
The main measure is a reduction in the general tariff on European products: it falls from 15% to 10%. This rate matches that of the United Kingdom, secured in its Economic Prosperity Deal (EPD), a bilateral trade agreement concluded with Washington by Prime Minister Keir Starmer and his envoy Peter Mandelson.
The new agreement replaces an arrangement nicknamed the 'Turnberry deal' — named after a Scottish golf course owned by Trump — which kept the EU at 15% without possibility of exemptions. The new text sets a 10% rate and restores exemptions for cork, diamonds, aircraft and spare parts, generic medicines and pharmaceutical active ingredients.
British Advantages Erased in Multiple Sectors
For sectors covered by the EPD — automotive, pharmaceutical, aerospace — the 10% rate and the UK's preferential conditions remain unchanged according to the British government.
By contrast, for sectors not covered — bicycles, clothing, chemicals, beverages, gifts — British companies are placed at a disadvantage. A knitted sweater made in the UK faces a cumulative tariff of 22.5% (12.5% existing sectoral duty plus 10% from the EPD), compared to just 10% all-in for the same product from the EU.
EU products (general rate)10
UK products covered by EPD10
UK clothing outside EPD (e.g. knitted sweater)22.5
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