If you’ve been following the news lately—specifically the chaotic trade updates of 2025 and 2026—you’ve probably heard a lot of shouting about "fairness." Everyone has an opinion on whether the current 15% or 50% rates are genius or a disaster. But to understand why we’re here, we have to look back at the "boring" years. Honestly, the world of trade before 2017 was a completely different planet.
Most people assume there were no tariffs at all. That's a myth.
The reality? What were tariffs on EU before Trump were actually a collection of very low "nuisance" taxes punctuated by a few insanely high spikes that would make your head spin. We're talking about a system that averaged out to less than 2%, but hidden in the fine print were 350% duties on tobacco and 25% taxes on pickup trucks. It was a gentleman’s agreement with some very sharp knives hidden under the table.
The Era of the 2 Percent Average
Before the first Trump administration took office in 2017, the United States and the European Union were essentially the closest things to "free trade" buddies you could find without an actual free trade agreement. According to data from the World Trade Organization (WTO), the trade-weighted average tariff the US slapped on European goods was roughly 1.5% to 2.4%.
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That is incredibly low. For most things—smartphones, most machinery, furniture—the duty was so small it was basically just a line item for a customs broker to handle. It didn't stop trade; it just slowed it down by a fraction of a cent.
But averages are liars.
If I have one foot in a bucket of ice and the other in a fire, on "average" I’m comfortable. Trade was the same way. While most industrial goods moved freely, there were "peaks" designed to protect specific lobby groups.
The Weird Stuff: Tobacco and Trucks
Did you know the US had a 350% tariff on raw tobacco?
Yeah.
That’s not a typo.
If you were a European producer trying to get raw leaf into North Carolina, you were essentially locked out.
Then there was the "Chicken Tax." This is a legendary bit of trade lore. Back in the 1960s, Europe taxed US chicken. In a fit of "fine, two can play at that game," the US put a 25% tariff on light trucks. Fast forward to 2016: that tax was still there. It's the reason why you didn't see many small European work vans or pickups on American streets before the recent trade shifts.
Why the System Worked (Until It Didn't)
You've gotta understand the vibe of the pre-2017 era. It was the age of "Multilateralism." Basically, if the US had a problem with a German subsidy or a French tax, we didn't just tweet about it. We went to Geneva.
The WTO was the principal referee. If the US felt the EU was being unfair, we filed a "consultation request." This process was slow. Like, "glacier-moving-through-molasses" slow.
The Boeing-Airbus Saga
This is the big one. This dispute started way back in 2004. The US claimed Europe was giving "launch aid" (basically low-interest loans) to Airbus. Europe shot back, saying the US was giving Boeing "hidden" subsidies through NASA and Defense contracts.
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For over a decade before Trump, this case just sat there. The tariffs didn't exist yet because the referee hadn't finished the paperwork. It wasn't until 2019 that the WTO finally gave the green light for billions in retaliatory tariffs.
Before 2017, this was the status quo:
- Disagree.
- Sue each other at the WTO.
- Wait 15 years.
- Keep trading at 2% in the meantime.
Comparing the "Before" and "After"
When people ask "what were tariffs on EU before Trump," they are usually trying to figure out if the 2025/2026 spikes are "normal."
They aren't. Not by a long shot.
In 2016, the "effective" tariff rate—what companies actually paid at the border—was around 1.4%. By mid-2025, that rate spiked toward 14.5% or higher for many sectors. That is a ten-fold increase in the cost of entry for European businesses.
The Car Controversy
Cars were the biggest sticking point. Before Trump, the EU had a 10% tariff on American cars. The US, meanwhile, only had a 2.5% tariff on European cars (excluding those trucks we talked about).
Trump's argument—which he's doubled down on in his 2025-2026 term—is that this was a "sucker deal." Economists like Douglas Irwin have noted that the US traditionally accepted these imbalances to keep the post-WWII alliance strong. We let Europe protect their farmers and carmakers because we wanted them as allies against the Soviets.
By 2017, the "Soviet" excuse was gone. The trade deficit was the only thing people were looking at.
Agricultural Barriers: The Stealth Tariffs
Tariffs weren't the only way we kept EU stuff out (and vice versa). Honestly, "Non-Tariff Barriers" (NTBs) were the real villains.
- Hormones in Beef: The EU banned US beef treated with hormones.
- GMOs: Massive restrictions on US corn and soy.
- Safety Standards: The US had different headlight requirements for cars than the EU.
These weren't "taxes," but they functioned like a 100% tariff. If your product isn't legal to sell, the tariff rate doesn't matter. Pre-Trump trade was a mess of these tiny regulatory hurdles. You've probably heard of the TTIP (Transatlantic Trade and Investment Partnership). This was Obama’s big attempt to fix all this. It was supposed to harmonize these rules and bring those already low tariffs to zero.
It died the moment the 2016 election ended.
Actionable Insights: What This Means for You Today
If you're a business owner or an investor looking at the current 2026 trade landscape, the "Before" era offers a few lessons you can actually use:
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- Watch the "Weighted" Average, Not the Headlines: When politicians talk about a "10% blanket tariff," remember that certain items (like tobacco or trucks in the past) can be much higher. Check your specific Harmonized System (HS) code.
- Regulatory Drift is Expensive: Even if tariffs were to drop back to 2% tomorrow, the "Non-Tariff Barriers" are growing. The US and EU are moving further apart on tech regulation and environmental standards. That costs more than a 2% tax.
- The WTO is No Longer the Shield: Before 2017, you could rely on the WTO to keep things predictable. Today, that's gone. Trade is now "bilateral"—it's a one-on-one negotiation.
The biggest takeaway? The low-tariff era of 2000-2016 was an anomaly. It was a period of extreme peace and cooperation that we likely won't see again for a long time.
To stay ahead of current shipping costs and duties, you should immediately audit your supply chain for "country of origin" labels. Many European parts are being rerouted through third-party countries to avoid the new 2025-2026 rates, but customs enforcement is getting way stricter about "substantial transformation" rules. Don't get caught with a back-dated tax bill.