WASHINGTON: The United States and the European Union on Thursday locked in a framework trade deal reached last month that includes a 15% US tariff on most EU imports, including autos, pharmaceuticals, semiconductors, and lumber.
In a three and half-page joint statement, the two sides listed the commitments made, including the EU’s pledge to eliminate tariffs on all US industrial goods and to provide preferential market access for a wide range of US seafood and agricultural goods.
Washington will reduce the current 27.5% US tariffs on cars and car parts once Brussels introduces the legislation needed to enact promised tariff cuts on US goods. A senior administration official said European carmakers could see relief within “hopefully weeks.” US President Donald Trump and European Commission President Ursula von der Leyen announced the deal on July 27 at Trump’s golf course in Turnberry, Scotland. The deal could be expanded over time to cover additional areas and improve market access.
The joint statement noted that US tariff relief on autos and auto parts would kick in on the first day of the month in which the EU introduced the legislation. It also said the US agreed to apply only Most Favored Nation tariffs from September 1 on EU aircraft, parts, pharmaceuticals, chemical precursors and unavailable natural resources, including cork.
The statement reiterated the EU’s intention to procure $750 billion in US LNG, oil, and nuclear energy products, plus an additional $40 billion of US-made AI chips, and to invest an additional $600 billion across US strategic sectors through 2028.
Both sides committed to address “unjustified digital trade barriers,” and the EU agreed not to adopt network usage fees. They also agreed to negotiate rules of origin to ensure benefits accrue predominantly to both trading partners and to cooperate on steel and aluminium market management while securing supply chains.
— Reuters
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