On August 21 (local time), the United States and the European Union released a joint statement announcing a Framework Agreement on Reciprocal, Fair, and Balanced Trade. The deal aims to deepen transatlantic economic ties, expand market access, reduce tariff barriers, and address supply chain security and non-market practices.
EU Commitments:
Eliminate tariffs on all U.S. industrial goods;
Grant preferential market access to a wide range of U.S. agricultural and seafood products including nuts, dairy, soybean oil, pork, and processed lobster;
Extend and expand the 2020 U.S.-EU tariff agreement on lobster;
Procure approximately $750 billion in U.S. energy products (LNG, oil, nuclear) by 2028;
Purchase at least $40 billion worth of U.S. AI chips.
U.S. Commitments:
Cap tariffs on EU goods at no more than 15%, including Section 232 tariffs on pharmaceuticals, semiconductors, and lumber;
Reduce 232 tariffs on EU automobiles and parts upon EU legislative action;
Apply MFN-only tariffs to specific EU goods (e.g., cork, aircraft, generics);
Support increased EU investment in U.S. strategic sectors, projected to exceed $600 billion by 2028.
Mutual Commitments:
Deepen cooperation in IP protection, labor rights, food/agriculture trade, green regulations, and supply chain resilience;
Coordinate on non-market economic practices by third countries;
Align on export controls, investment screening, and public procurement standards.