U.S. and EU flesh out trade commitments under new framework deal
The U.S. will impose a 15% tariff on imports of European cars, pharmaceuticals and other products, according to a joint statement announced Thursday by the Trump administration and European Union.
The pact also calls for the 27-member EU to eliminate tariffs on all American industrial exports and to offer preferred terms for some seafood and farm products, while the U.S. will reduce tariffs accordingly.
The U.S. pledged to limit import duties on most European goods, including cars, dugs semiconductors, to no more than 15%, pending additional legislative actions by the EU.
The agreement also covers $750 billion in energy purchases and $600 billion in EU investments by 2028.
"This Framework Agreement represents a concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment," the White House and EU said in a joint statement. "This Framework Agreement will put our trade and investment relationship – one of the largest in the world – on a solid footing and will reinvigorate our economies' reindustrialization."
In July, President Donald Trump and European Commission President Ursula von der Leyen met briefly at Trump's Turnberry golf course in Scotland and announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump's threat of a 30% rate if no deal had been reached by Aug. 1.
"This is a serious, strategic deal -- and we are fully behind it. A wide range of sectors, including strategic industries such as cars, pharmaceuticals, semiconductors, and lumber, stand to benefit," said the EU trade commissioner Maros Sefcovic.
Together, the U.S. and the EU account for 44% of the global economy.
This is a developing story and will be updated.
AFP and The Associated Press contributed to this report.
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