The United States and European Union have unveiled fresh details of their trade framework, clarifying tariff rules and investment pledges after last month’s agreement.
Under the deal, Washington will apply the higher of its Most Favored Nation (MFN) tariff or a 15% rate on EU goods, with exemptions for cork, aircraft, and generic pharmaceuticals. Tariffs on semiconductors, lumber and branded drugs are capped at 15% — well below the 100%–250% duties previously threatened by President Donald Trump.
The EU has committed to eliminate tariffs on all US industrial goods, expand access for American seafood and agriculture, and increase procurement of US military equipment. Brussels also reiterated plans to buy US$750bn of American energy and invest at least US$600bn in the US, though officials described these figures as intentions rather than guarantees.
Pharmaceuticals, the EU’s largest export to the US in the sector, will face a maximum 15% tariff, while Trump’s MFN drug pricing rule will apply only to generics from September. The White House’s earlier investigation into pharma imports had raised the prospect of tariffs as high as 250%.
Autos will also be covered, with a conditional 15% tariff on European cars and parts — down from the current 27.5% — once Brussels introduces legislation to cut its industrial duties. Both sides also agreed to recognise each other’s automotive standards. German industry body VDA warned the rate would still cost its companies billions annually.
The agreement leaves out sensitive areas including the EU’s Digital Services Act and wine and spirits, though EU Trade Commissioner Maros Sefcovic said these issues could be revisited.
Calling the framework “the most favourable trade deal the US has extended to any partner,” Sefcovic added that it marked a first step toward deeper cooperation.
