U.S. and EU unveil details of new trade framework covering tariffs, energy and investment
The European Union and the United States on Thursday unveiled details of their recently concluded tariff agreement, bringing clarity to contested issues such as pharmaceuticals, semiconductors, and autos, reports a Kazinform News Agency correspondent.
The two sides reached the deal last month after weeks of negotiations. It sets a 15% blanket tariff on EU exports to the United States, while the EU pledged to purchase $750 billion worth of American energy and invest at least $600 billion in the U.S. economy.
At the time, political and business leaders expressed concern that the agreement appeared unbalanced and left open questions about tariffs on key industries targeted by U.S. President Donald Trump.
Speaking to reporters Thursday, EU Trade Commissioner Maros Sefcovic called the outcome “the most favorable trade deal the U.S. has extended to any partner, but claimed ‘this is not the end,’ but rather ‘the beginning, the first step…that can grow over time to cover more sectors, improve market access, and strengthen our economic ties even further’.
Tariff measures
Beginning September 1, Washington will apply only Most Favored Nation (MFN) duties, at 15%, on selected EU goods, including cork, aircraft and aircraft parts, and generic pharmaceuticals.
A senior U.S. administration official confirmed that Section 232 tariffs on lumber, semiconductors, and pharmaceuticals were capped at 15%, well below Trump’s earlier threat of a 100% levy on semiconductors.
The EU, for its part, committed to eliminate tariffs on all U.S. industrial goods and expand preferential access for American seafood and agricultural products.
The two sides also announced a conditional 15% tariff on European autos and auto parts bound for the U.S., to be triggered once Brussels introduces legislation lowering its own industrial duties. “With respect to automobiles, the United States and the European Union intend to accept and provide mutual recognition to each other’s standards,” the joint statement said.
Pharmaceuticals and energy
Europe’s pharmaceutical sector, the largest foreign supplier to the U.S., will also face tariffs capped at 15%. From September, Washington’s MFN drug pricing policy will apply only to generics, aiming to tie U.S. prices to lower levels in other developed economies.
The White House had previously floated tariffs of up to 250 % on pharmaceuticals, a threat that spurred new U.S. investment commitments from Novartis, AstraZeneca, Roche, Novo Nordisk and Eli Lilly, alongside pricing adjustments.
The EU reiterated its pledges to purchase U.S. energy and channel additional investment into artificial intelligence chips, defense procurement, and broader sectors. Officials, however, described the figures as “intended and expected” rather than binding commitments.
The agreement left out provisions on the EU’s Digital Services Act, a long-standing point of contention in trade talks. “The digital sector has been kept out of trade talks,” Sefcovic confirmed. He also noted that while wine and spirits were not included, “these doors are not closed forever.”
Trump has promoted the framework as “the biggest trade deal ever made,” highlighting its benefits for the American auto industry.
Earlier, it was reported that the U.S. and the EU had reached a framework trade agreement, introducing a 15% import tariff on most EU goods – half the rate initially threatened – thereby averting a larger trade conflict between the two allies, which together account for nearly one-third of global trade.
