The tariff agreement reached between the European Union and the United States took effect on July 1, making permanent the previously imposed 15% temporary import tariff on most EU goods. 

The US had initially imposed tariffs on steel and aluminum imports in 2018 and later expanded these tariffs to include derivative products such as machinery and structural components. The EU stated that these measures violated the framework agreement signed in August 2025 and demanded their cancellation.

Meanwhile, the EU Carbon Border Adjustment Mechanism (CBAM) entered its final phase on January 1, 2026, targeting the steel, aluminum, cement, hydrogen, fertilizer, and power sectors to prevent carbon leakage.

US Ambassador Andrew Puzder said that protesting US measures while erecting such protectionist barriers exposes a shocking double standard. The US imposes tariffs, and the EU levies carbon taxes; although their names differ, both policies fundamentally increase import costs to protect local production from unfair competition, ultimately serving the same purpose.