By September 2025, several adjustments will be made to the tariff policies of the United States and China toward the European Union. These changes are expected to significantly impact cross-border trade, industrial chain layout and consumer markets. Below is an overview of the major changes and their reasons:

I. Adjustments in U.S. Tariffs Toward the EU

1. Continuation of retaliatory tariffs on digital services taxes

   The U.S. will maintain a 25% retaliatory tariff on luxury goods such as cosmetics and handbags from EU countries like France and Italy.

   Reason: The EU imposes digital services taxes on U.S. tech companies, which the U.S. considers discriminatory, leading to this countermeasure.

2. Partial exemptions on steel and aluminum tariffs

   Low-carbon steel and aluminum producers from Germany, Sweden, and other countries may receive tariff exemptions.

   Reason: The U.S. aims to strengthen cooperation with the EU through a "green trade alliance" to address global steel overcapacity.

3. Limited reduction in agricultural tariffs

   Tariffs on EU products such as wine and cheese will see a slight reduction of 3-5%, while tariffs on beef and poultry will remain high.

   Reason: The U.S. and EU are attempting to ease trade tensions through partial tariff reductions, though disagreements in the agricultural sector persist.

II. Adjustments in China’s Tariffs Toward the EU

1. Increase in electric vehicle tariffs

   China will raise tariffs on EU electric vehicles from 10% to 25%.

   Reason: This is a response to the EU’s anti-subsidy investigation into Chinese electric vehicles, aimed at protecting China’s domestic new energy vehicle industry.

2. Reduction in tariffs on photovoltaic products

   Tariffs on solar panels and components will decrease from 11% to 5%.

   Reason: China needs to import high-end photovoltaic technology and equipment from the EU to achieve its carbon neutrality goals and reduce costs.

3. Reduction in tariffs on luxury goods

   Tariffs on Swiss watches, Italian leather goods, and other luxury products will decrease from 15% to 8%.

   Reason: To stimulate domestic consumption and improve trade relations with the EU.

III. Core Motivations Behind the Policy Changes

These adjustments reflect the economic and strategic game among major economies. While the U.S. is collaborating with the EU to address trade practices with China, disagreements remain between the U.S. and EU on issues such as digital taxes and agricultural products. China, on the other hand, is employing a differentiated tariff strategy to protect key industries while expanding cooperation with the EU in new energy and high-end consumption.

IV. Recommendations and Outlook

Trade practitioners should closely monitor supply chain risks and consider diversifying their layout to mitigate tariff fluctuations. Consumers may see price adjustments on certain EU goods, particularly in the luxury and electric vehicle sectors. In the long term, negotiations related to green trade and digital taxes will remain key variables affecting relations between the U.S., EU, and China.

This analysis is based on publicly announced policy information as of September 2025. Specific implementations may be adjusted dynamically based on bilateral negotiations.