United States and European Union announce trade framework agreement
Focuses on reciprocal and balanced trade
The United States and European Union (EU) today announced a framework agreement on “reciprocal, fair, and balanced” trade.
The joint statement lists 19 key terms of the agreement, including the elimination of EU tariffs on U.S. industrial goods and preferential access for various U.S. agricultural products, and a commitment from the United States to apply the higher of the most favored nation (MFN) tariff rate or a 15% tariff on EU goods (with certain exemptions) effective September 1, 2025.
The agreement also addresses tariffs on pharmaceuticals, semiconductors, lumber, and automobiles, with reductions contingent on EU legislative proposals. Additionally, the agreement covers energy supplies, investment, defense equipment procurement, non-tariff barriers, and cooperation on standards, cybersecurity, and labor rights.
Read a related EC press release (August 21, 2025)