U.S. And EU Announce Major Trade Deal Framework – Full Details

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The United States and the European Union have released a joint statement confirming the details of a new trade agreement reached last month. The deal aims to reshape trade flows between the two economic powers by balancing tariffs, boosting investment, and strengthening supply chains.

Key U.S. Commitments

The U.S. will levy a 15% tariff on most EU imports, including automobiles, pharmaceuticals, semiconductor chips, and lumber.
From September 1, the U.S. will apply only Most Favored Nation (MFN) tariffs on aircraft, generic pharmaceuticals, chemical precursors, and natural resources not produced domestically.
Tariff relief for EU automakers is expected “within weeks,” according to senior U.S. officials.
The U.S. pledged to reduce tariffs on autos and auto parts once the EU introduces legislation to lower its own car tariffs.
A ceiling of 15% will apply on tariffs for EU-origin pharmaceuticals, semiconductors, and lumber.

Key EU Commitments

The EU will eliminate all tariffs on U.S. industrial goods.
It will grant preferential market access to U.S. seafood and agricultural exports.
The EU will procure $750 billion in U.S. liquefied natural gas (LNG), oil, and nuclear energy products through 2028.
It will also commit to buying at least $40 billion in U.S. artificial intelligence chips.
EU companies plan to invest an additional $600 billion in U.S. strategic sectors by 2028.

Cooperation on Trade Rules and Sectors

Both sides agreed to negotiate rules of origin to ensure that the benefits of the trade deal go primarily to U.S. and EU companies, rather than third countries. They are also considering new policies to protect their domestic steel and aluminum markets from global overcapacity.

Additionally, the U.S. and EU reaffirmed their commitment to reducing digital trade barriers. As part of the deal, the EU will not move ahead with any proposed network usage fees for American digital companies.

The two sides will also explore new ways to strengthen supply chains, possibly through tariff-rate quota arrangements.

Statements from Officials

EU Commission Vice President Maroš Šefčovič called the framework a “first step” that could expand to cover more sectors over time. He highlighted that the agreement is expected to provide immediate relief to the automotive industry.

From the White House, the joint statement described the framework as an agreement for “reciprocal, fair, and balanced trade” between both partners.

Looking Ahead

The deal is seen as a significant reset in U.S.-EU trade relations. Both sides will now work on finalizing the legislative steps needed to implement tariff changes—especially in the auto sector—and to move forward with large energy and technology procurement plans.