More details of the new framework for trade between the US and the EU are now available. The agreement aims to reduce tariff barriers and reinforce supply chain resilience while deepening cooperation in strategic sectors such as energy, technology, and defense. We’ve summarized the key updates here:
Industrial and Agricultural Market Access
- The EU will eliminate tariffs on all US industrial goods
- There will be expanded preferential access for US agriculture and seafood, including dairy, pork, fruits, vegetables, and processed lobster
- The US will apply Most Favored Nation (MFN) rates only to certain EU products such as aircraft, cork, and pharmaceuticals, starting September 2025
Section 232 Tariffs and Strategic Metals
- US Section 232 tariffs on EU pharmaceuticals, semiconductors, and lumber are capped at 15%
- Auto and auto part tariffs will adjust once the EU enacts its tariff cuts
- There will also be joint exploration of tariff-rate quotas to balance steel and aluminum overcapacity concerns
Energy and Technology Commitments
- The EU will procurement $750 billion in US energy products (LNG, oil, nuclear) through 2028
- As well as the purchase of $40 billion in US AI chips for European computing infrastructure
Investment and Defense Alignment
- EU companies will invest $600 billion in US strategic sectors by 2028
- The EU will also expand procurement of US defense equipment to strengthen NATO interoperability
Standards, Sustainability, and Regulatory Cooperation
- There will be mutual recognition of automotive standards and technical cooperation on industrial standards
- The EU will mitigate US concerns over deforestation regulation, Carbon Border Adjustment Mechanism flexibilities, and sustainability directives
- And aim to reduce administrative burdens on businesses, including small and medium-sized enterprises
Digital Trade and Intellectual Property
- The US and the EU intend to continue to support the multilateral moratorium on customs duties on electronic transmissions at the World Trade Organization and seek the adoption of a permanent multilateral commitment
- Plans to negotiate a US–EU mutual recognition agreement on cybersecurity will begin
- The US and EU will enhance cooperation on intellectual property enforcement
Full details are available here.
We are updating our FAQ document and will issue it soon.
