The United States and the European Union have reached a Framework Agreement aimed at creating reciprocal, fair, and balanced trade between the two economies. This agreement is intended to strengthen one of the world's largest trade and investment relationships and support economic reindustrialization on both sides of the Atlantic.
According to a joint statement, "This Framework Agreement represents a concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment. 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. It reflects acknowledgement by the European Union of the concerns of the United States and our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power. The United States and the European Union intend this Framework Agreement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship."
Under this framework, the European Union plans to remove tariffs on all U.S. industrial goods while offering preferential market access for several American seafood and agricultural products. The EU also intends to extend an earlier tariff agreement concerning lobster products with an expanded scope.
For its part, the United States has agreed to apply either its Most Favored Nation (MFN) tariff rate or a 15 percent tariff—whichever is higher—on goods originating from the EU. Starting September 1, 2025, only MFN tariffs will apply to certain EU products such as cork, aircraft parts, generic pharmaceuticals, semiconductors, lumber, as well as other items considered important for both economies.
Tariffs imposed under Section 232 of the Trade Expansion Act on specific EU-originating goods like pharmaceuticals or semiconductors will not exceed 15 percent. Should legislative changes occur in Europe as outlined in this agreement, U.S. tariffs on automobiles from Europe may also be reduced accordingly.
Both parties plan to negotiate rules ensuring that benefits from these changes primarily accrue within their own markets. They have committed to cooperating on energy security; notably, Europe aims to procure $750 billion worth of U.S. liquified natural gas, oil, nuclear energy products through 2028 alongside at least $40 billion in U.S.-made AI chips for computing centers.
Mutual investments are set for growth: current transatlantic investments already surpass $5 trillion, with European companies expected to invest another $600 billion in strategic sectors across America by 2028.
Defense cooperation is also included: "The European Union plans to substantially increase procurement of military and defense equipment from the United States, with the support and facilitation of the U.S. government," according to officials.
Further commitments address reducing non-tariff barriers—including mutual recognition of automobile standards—and improving technical cooperation between standards organizations from both regions.
Other provisions target streamlining requirements for sanitary certificates related to pork and dairy exports; addressing concerns about deforestation regulations affecting U.S.-EU trade; reviewing carbon border adjustment mechanisms impacting small businesses; easing compliance burdens related to corporate sustainability directives; negotiating mutual recognition agreements for cybersecurity; strengthening collaboration against third-country export restrictions on critical minerals; enhancing intellectual property protections; upholding labor rights including eliminating forced labor in supply chains; removing digital trade barriers such as network usage fees or customs duties on electronic transmissions; consulting on digitalizing customs procedures; aligning economic security measures regarding supply chain resilience; reviewing public procurement practices involving third countries; among others.
The agreement will be formally documented following internal procedures within each party’s institutions.