US and EU Release Details of Trade Deal

The United States and the European Union have finalized details of a sweeping trade framework that lowers tariffs on European automobiles and pharmaceuticals while opening the door to new cooperation on steel and aluminum.

According to a joint statement issued Thursday, the US will cap most sectoral tariffs at 15%, including on autos, chips, and pharmaceuticals.

Tariff reductions on EU autos and auto parts — down from a previous 27.5% — will take effect once Brussels introduces legislation to eliminate tariffs on US industrial goods and expand “preferential market access” for seafood and agriculture.

A senior Trump administration official told reporters the shift could take effect “in weeks” once the EU triggers its legislative process.

Steel, Aluminum, and Energy Commitments

While Washington will retain a 50% tariff on EU steel and aluminum, the two sides pledged to explore quota-based solutions and “ring-fencing” against global overcapacity.

The EU also committed to procure $750 billion worth of US energy products — including LNG, oil, and nuclear power — through 2028. Additionally, Brussels pledged to purchase at least $40 billion in US AI chips and ramp up defense and military procurement from American companies.

$600B EU Investment in US

The EU will invest $600 billion in the United States over the next three years across pharmaceuticals, semiconductors, and advanced manufacturing. The White House said the investments would help strengthen US supply chains and create jobs in strategic sectors.

Agriculture and Digital Trade

In return, the EU pledged to remove tariffs on all US industrial goods and grant preferential access for American seafood and agricultural exports such as nuts, dairy, pork, bison, and soybean oil.

On the digital front, Brussels agreed not to impose controversial “network usage fees” on US platforms and to ensure new sustainability rules do not pose “undue restrictions on transatlantic trade.”

Deal Highlights at a Glance

Below we summarize the highlights from the deal:

US to levy 15% tariff on most EU imports, including autos, pharmaceuticals, semiconductor chips, and lumber.
US and EU to consider steps to ensure secure supply chains, including tariff rate-quota solutions.
US and EU commit to address “unjustified digital trade barriers,” with EU agreeing not to adopt network usage fees.
US and EU to consider cooperation on ring-fencing domestic steel and aluminum markets from overcapacity.
US and EU to negotiate rules of origin to ensure the trade agreement benefits predominantly both partners.
EU companies to invest an additional $600 billion across US strategic sectors through 2028.
EU intends to procure $750 billion in US LNG, oil, and nuclear energy products, plus at least $40 billion of US AI chips.
From Sept. 1, US to apply only MFN tariffs on EU aircraft and parts, generic pharmaceuticals, ingredients, chemical precursors, and unavailable natural resources.
US will lower tariffs on autos and auto parts when EU introduces legislation to enact tariff reductions.
EU intends to eliminate tariffs on all US industrial goods and provide preferential market access for US seafood and agricultural goods.
Senior US official expects tariff relief for EU automakers to come in “hopefully weeks.”
US and EU release joint statement locking in details of trade deal reached last month.

Tariffs

15% on most goods (vs. 30% threatened)
15% on autos (previously 25%)
15% on pharma + chips
US will retain a 50% tariff on EU steel and aluminum
“Zero-for-zero” tariffs agreed for some agricultural products, aircraft component parts, and certain chemicals
No final agreement yet on tariffs for spirits
Aircraft exports temporarily exempt pending outcome of US investigation