Announced Sunday, the deal will set the tax on goods imported into the United States from the European Union at 15 percent.
On Sunday in Scotland, President Donald Trump and European Commission President Ursula von der Leyen announced that after weeks of negotiations, the two have come to a preliminary trade deal.
While final details are still being hammered out, the agreement reached Sunday will set the tax on the vast majority of EU goods imported into the United States at 15 percent.
That is less than the rate Trump initially proposed when he announced his slate of “reciprocal” tariffs in April, 20 percent, and half of what he threatened in the midst of negotiations earlier this month.
However, it is still a significant increase from the current tariffs on EU goods, which hover in the low single digits on average.
In exchange, the EU has agreed to purchase $750 million in energy from the U.S. over the next three years and increase its investment in the U.S., particularly in the pharmaceutical and automotive industries.
The U.S. and EU also have agreed to a “zero-for-zero” tariff on certain products.
According to a statement from von der Leyen, they are: all aircraft and aircraft component parts; certain chemicals, generic drugs, and agricultural products; semiconductor equipment; natural resources; and critical raw minerals.
The EU is a 27-nation bloc that includes several countries that are part of fine jewelry supply chain, Italy, Belgium, France, and Germany among them.
On Sunday, von der Leyen said the deal gives “much-needed clarity” for the EU’s businesses and its citizens.
The announcement of the deal between the EU and U.S. comes less than a week before the higher “reciprocal” tariffs Trump initially proposed in April are set to take effect.
The White House has worked out preliminary deals with a few nations, including the United Kingdom, which is not part of the EU (10 percent), Vietnam (20 percent), and Japan (15 percent).
It also reached a temporary deal with China that lowers tariffs on both sides, though that deal is set to expire in mid-August.
For countries that have not struck a deal with the Trump administration, the higher tariffs are set to kick in this coming Friday, Aug. 1.
As of press time, the following are the pending rates on countries that are part of the jewelry supply chain.
These rates are sourced from The New York Times tariff tracker, which is updated regularly.
Angola: 32 percent
Botswana: 37 percent
Democratic Republic of the Congo: 11 percent
India: 26 percent
Israel: 17 percent
Lesotho: 50 percent
Mozambique: 16 percent
Namibia: 21 percent
South Africa: 30 percent
Switzerland (which is not part of the EU): 31 percent
Thailand: 36 percent
Zambia: 17 percent
Zimbabwe: 18 percent