The United States and European Union released additional details Thursday about the major trade agreement agreed to in July.
In a joint statement, the U.S. and EU said they had agreed on “a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade.” The agreement will allow the U.S. to keep its 15% tariff on the European bloc.
Last month, the U.S. and EU announced a handshake agreement that the U.S. would keep the 15% tariff on most goods arriving from the EU. President Donald Trump had subjected all automobiles to a 27.5% tariff, but he said Europe would be exempt and face the base 15%.
The statement said the EU would introduce legislation to eliminate its tariffs on all industrial goods coming from the U.S., as well as agricultural products, including bison meat, tree nuts, dairy, and certain seafoods. The statement said this would be done before automobile imports would see the lower tariff rate.
“With respect to automobiles, the United States and the European Union intend to accept and provide mutual recognition to each other’s standards,” the U.S. and EU said in a joint statement published Thursday.
The statement noted that the EU planned “to eliminate tariffs on all U.S. industrial goods and to provide preferential market access for a wide range of U.S. seafood and agricultural goods.” This point was highlighted in the initial agreement announcement.
The EU’s pharmaceutical industries, which represent the U.S.’s top source for drug imports, will see tariffs capped at up to 15%. Trump had threatened in recent weeks to raise tariffs on pharmaceuticals by as much as 250%.
LIST: UNUSUAL GOVERNMENT INTERVENTIONS INTO THE PRIVATE SECTOR UNDER TRUMP
Trump had originally said the EU agreed to purchase $750 billion of American energy and that the bloc would increase its investment in the U.S. by more than $600 billion above current levels through 2028.
The agreement still represents a large increase in tariffs for the U.S.-EU relationship, as most duties were at 0%. Before this agreement, the EU was set to be subject to 30% tariffs by Trump’s self-imposed Aug. 1 trade deal deadline.
“Predictability for our companies & consumers. Stability in the largest trading partnership in the world. And security for European jobs & economic growth in the long-term. This EU-US trade deal delivers for our citizens & companies, and strengthens transatlantic relations,” European Commission President Ursula von der Leyen said after the framework was announced Thursday.
Commerce Secretary Howard Lutnick praised the deal, saying, “The America First Trade Agenda has secured the most important trading partner, creating a major win for American workers, U.S. industries, and our national security. Tariffs should be one of America’s favorite words.”
