According to the German Institute for Economy (IW), the customs deal with the United States appears to have given the EU an advantage compared to Asian competitors. While the auto industry notably benefited from reduced tariffs, the mechanical engineering sector experienced an increase in customs duties.
Analyzing a period between April 2025 and February 2026, the effective US tariff rate on imports from the EU averaged 7.8%, starkly contrasting with the nearly 37% burden placed on goods arriving from China. Germany was particularly impacted by the US tariff shock, yet benefited above average from the US-EU deal; its customs rate dropped to an average of 10.6%, which was closer to the overall EU average of 8.2%.
However, the effective EU tariff rate for mechanical engineering products rose significantly to an average of 12.6% after the deal was implemented. This increase resulted from the US government classifying machinery composed largely of steel as plain steel products, thereby applying a 50% tariff. IW economist Samina Sultan noted that this classification undercuts the purpose of the deal and requires urgent renegotiation.