The European Union's tariff policy is currently in a state of flux due to recent actions and proposed measures, primarily involving trade relations with the United States and China. Here's a breakdown of the key updates: EU-US Tariff Situation: US Tariffs Imposed: The previous US administration imposed tariffs on steel (25%) and aluminum imports from the EU. More recently, a broader "reciprocal tariff policy" was announced, which initially included a 20% tariff on most imports from the EU. EU Countermeasures: In response to the US steel and aluminum tariffs, the EU prepared countermeasures targeting approximately €18 billion of US goods. These measures include tariffs of 10-25% on a variety of US products, such as peanut butter, Harley-Davidson motorcycles, jeans, orange juice, steel, and aluminum. 90-Day Pause: The US administration announced a 90-day pause on the implementation of the country-specific tariffs (excluding those on China) that were part of the reciprocal tariff policy. This has reduced the immediate tariff rate on most EU products to 10%. Tariffs on steel, aluminum, and automobiles remain in place. EU Pauses Countermeasures: To allow room for negotiations, the EU has also decided to temporarily suspend the application of its countermeasures against the US steel and aluminum tariffs until July 14, 2025. However, the EU is continuing preparatory work on further countermeasures. Negotiations Underway: Discussions are ongoing between the EU and the US to find a negotiated solution. The EU has proposed a "zero for zero" option for industrial goods tariffs. However, the US has indicated this may not be sufficient. Potential Impact: The imposed and potential tariffs create uncertainty for businesses and could lead to higher costs and slower economic growth on both sides of the Atlantic. The EU estimates that its exports to the US could decline significantly in a no-deal scenario, although the overall GDP impact for the EU is projected to be manageable. EU-China Tariff Situation: US Increases Tariffs on China: The US has significantly increased tariffs on Chinese goods, some reaching as high as 145% or even 245% when including retaliatory measures from China. Potential Trade Diversion: There is concern within the EU that the high US tariffs on Chinese goods could lead to a diversion of these exports to the European market, potentially requiring increased protection for the EU's single market. EU Investigation into Chinese EVs: The European Commission has initiated an investigation into subsidies provided to Chinese battery electric vehicles and has imposed provisional duties to counteract these subsidies. General EU Tariff Information: Common Customs Tariff (CCT): The EU operates a customs union, meaning that member states apply a common external tariff to goods entering the EU from outside the union. There are no tariffs on trade between EU member states. TARIC: The Integrated Community Tariff (TARIC) details the specific tariff rates and other regulatory measures applicable to goods imported into or exported from the EU. Combined Nomenclature (CN): The CN is an 8-digit system, specific to the EU, used for classifying goods for customs tariffs and trade statistics. It builds upon the 6-digit Harmonized System (HS) used worldwide. Ongoing Updates: The Combined Nomenclature and Common Customs Tariff are updated annually. The latest version has been applicable since January 1, 2024. Importance of HS Codes: Accurate identification of HS codes is crucial for businesses involved in international trade with the EU to anticipate costs, ensure smooth customs clearance, and take advantage of any preferential trade agreements. In summary, the EU's tariff landscape is currently shaped by trade tensions with the US, leading to implemented tariffs, countermeasures, and ongoing negotiations. Simultaneously, the EU is monitoring the impact of US-China trade relations and has begun taking measures related to imports from China in specific sectors. The EU's Common Customs Tariff remains the foundation of its external trade policy, with regular updates to product classifications and duty rates.