The European Union and the United States have announced a joint framework designed to shape future transatlantic trade relations. The announcement follows a political understanding reached between European Commission President Ursula von der Leyen and U.S. President Donald Trump in late July, according to a statement released by the Brussels-based Commission on Thursday.
The initiative aims to enhance stability and predictability in trade between the two economic blocs. Central to the agreement is a new U.S. tariff arrangement that establishes a maximum tariff rate of 15 percent on most EU exports, impacting sectors like automobiles, pharmaceuticals and semiconductors. Regarding vehicles and automotive components, the U.S. tariff ceiling of 15 percent will coincide with the EU initiating procedures to lower tariffs on U.S. products.
Certain product categories, including aircraft parts and basic chemical inputs, will continue to benefit from Most Favored Nation tariffs. The EU and the U.S. also expressed intention to safeguard their economies against overcapacity in the steel and aluminum sectors and to establish secure supply chains.
Von der Leyen stated that this declaration represents a step in an ongoing process. “We continue to work with the United States to reach further tariff reductions, identify additional areas of cooperation and unlock more economic growth potential”. She also emphasized the EU’s commitment to diversifying international trade partnerships to foster employment and prosperity within the bloc.
