EU Sets 15% Tariff Ceiling for Chip Exports to U.S., Despite New Levies

The EU has clarified that chip exports to the US will face a 15% tariff ceiling, despite new levies announced by President Trump. The tariff ceiling will apply to EU exports of semiconductors, regardless of other tariffs imposed by the US on other exporters. The EU executive arm, the European Commission, said it looks forward to the US implementing this commitment. Shares of Dutch chip equipment suppliers ASML Holding and ASM International rose, while German chip maker Infineon Technologies and STMicroelectronics' shares were mixed.

Title: EU Clarifies 15% Tariff Ceiling on Chip Exports to US

The European Union (EU) has clarified that chip exports to the United States will face a 15% tariff ceiling, despite new levies announced by President Donald Trump. This announcement comes as the EU seeks to maintain stability and predictability in its economic relationship with the US, particularly in the semiconductor industry.

The European Commission, the executive arm of the EU, has stated that the 15% tariff ceiling will apply to EU exports of semiconductors, regardless of other tariffs imposed by the US on other exporters. This commitment was reached during a meeting in Algiers on July 27 between European Commission President Ursula von der Leyen and US President Donald Trump.

The agreement is part of a broader process to deepen economic cooperation and improve market access between the EU and the US. It is designed to restore stability and predictability in their trade relationship, which has been subject to fluctuations due to various trade disputes and negotiations.

The EU's clarification comes in response to Trump's announcement of potential 100% tariffs on semiconductor chips imported from countries not manufacturing in the US or committed to doing so. The EU has secured a commitment that it will not face tariffs higher than 15% on its semiconductor exports, which is a significant concession given the potential impact of higher tariffs on the global semiconductor market.

The EU's move to secure a 15% tariff ceiling is part of a broader strategy to protect its semiconductor industry and ensure that its companies remain competitive in the global market. The EU has also committed to investing in the US market, with plans to procure up to $750 billion (about €700 billion) in US-sourced energy and €40 billion worth of US-manufactured AI chips over the next three years.

The announcement has had mixed reactions in the financial markets. Shares of Dutch chip equipment suppliers ASML Holding and ASM International rose, while German chip maker Infineon Technologies and STMicroelectronics' shares were mixed. The mixed reaction reflects the uncertainty surrounding the impact of the new tariffs on the global semiconductor market and the potential benefits and costs for various companies.

The July 27 agreement is political in nature and not legally binding. Implementation of the deal will require further negotiations in line with internal procedures on both sides. The European Commission has emphasized that the agreement protects EU regulatory sovereignty and preserves sensitive areas of agriculture, including beef and poultry.

The new tariffs and trade agreements are part of a broader trend of reshoring manufacturing and increasing domestic production in the US, driven by concerns about national security and supply chain disruptions. The EU's commitment to a 15% tariff ceiling is a significant step in maintaining a stable and predictable trade relationship with the US, while also ensuring that its semiconductor industry remains competitive.

References:
[1] https://m.economictimes.com/news/international/global-trends/trump-says-us-will-levy-100-tariff-on-some-chip-imports/articleshow/123153029.cms
[2] https://www.thepigsite.com/news/2025/08/eu-us-strike-deal-to-cut-tariffs-and-ease-trade-tensions
[3] https://www.politico.com/news/2025/08/06/trump-says-he-will-put-100-percent-tariff-on-semiconductors-00496413