United States and European Union announce trade framework agreement

Focuses on reciprocal and balanced trade

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August 21, 2025

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)

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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