In a joint statement released Thursday, the US and the EU outlined the current agreement between the trading partners and reaffirmed several trade obligations.
According to the text, this Framework Agreement will re-energize our economies’ reindustrialization and establish one of the strongest trade and investment relationships in the world.
The United States and the European Union account for 44% of the world economy.
A 15% U.S. tariff rate on the majority of European goods is one of the letter’s main arguments; the specifics of auto tariffs are linked to EU legislative activities.
Additionally, the U.S. will lower tariffs in accordance with the EU’s agreement to remove duties on industrial commodities and many agricultural products. By 2028, the deal also includes $600 billion in EU investments and $750 billion in energy purchases. Environmental regulations, digital commerce, and non-tariff barriers are also included by the pact.
In order to fend off Trump’s threat of a 30% tariff if no agreement was reached by August 1, President Donald Trump and European Commission President Ursula von der Leyen met briefly at Trump’s Turnberry golf course in Scotland in July and announced a comprehensive trade agreement that imposes 15% tariffs on the majority of European goods.
In what is the world’s largest bilateral economic relationship, with an annual commerce of over $2 trillion, or 1.7 trillion euros, the U.S. and the EU maintained very low tariff levels prior to the Republican president of the United States returning to power for a second term.
