The United States and the European Union have formalized the terms of a new framework trade agreement, setting the stage for major changes in transatlantic trade flows.
According to a joint statement released Thursday, the agreement includes a 15% tariff on a wide range of imports from Europe, covering sectors such as automobiles, auto parts, pharmaceuticals, semiconductors, and lumber. The tariff will apply at either 15% or the most favored nation rate, whichever is higher.
Certain goods, including aircraft and aircraft parts, chemical precursors, generic pharmaceuticals, and critical raw materials, will face only the most favored nation tariff beginning September 1. Officials noted that other sectors could be added in the future.
In return, Europe committed to eliminating tariffs on industrial products from the U.S. and expanding market access for agricultural exports such as tree nuts, fresh produce, pork, dairy, and processed foods. Both sides also agreed to cooperate on automobile standards, while discussions on steel and aluminum overcapacity protections remain under consideration.
The agreement extends beyond tariffs. Europe is expected to purchase $750 billion in energy products and $40 billion in artificial intelligence chips from the U.S. through 2028. Additionally, companies in Europe are projected to invest $600 billion in the U.S. over the next three years.
Officials from both sides emphasized that the deal provides predictability, stability, and strengthened cooperation for the world’s largest trading partnership. The measures are designed to reduce regulatory barriers, enhance supply chain resilience, and create long-term economic benefits for industries on both continents.
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