The US has reached an agreement to impose tariffs of up to 15% on most EU goods, including automobiles and chips.

On August 21st, the White House issued a joint statement with the EU, stating that the US and EU have reached an agreement on the framework of a trade agreement. The EU subsequently issued a joint statement.

According to the White House statement, the framework of the US-EU trade agreement includes 19 key points, covering agricultural products, industrial products such as automobiles and aircraft, chips and semiconductors, energy, EU investment in the US, easing environmental regulations, cybersecurity agreements, and digital trade barriers.

EU will eliminate tariffs on all US industrial products and provide preferential market access for US agricultural products.

The White House statement clearly stated that the EU will eliminate tariffs on all US industrial products and provide preferential market access for US aquatic and agricultural products, including nuts, dairy products, fresh and processed fruits and vegetables, processed foods, seeds, soybean oil, and meat products. In addition, the EU will immediately take steps to extend the lobster provisions of the Joint Statement on the US-EU Tariff Agreement, announced on August 21, 2020 (originally due to expire on July 31, 2025), and expand the product scope to include processed lobster.

The US imposes tariffs of up to 15% on most EU goods, including automobiles, pharmaceuticals, semiconductor chips, and timber.

Furthermore, the statement clarified that the US commits to applying the higher of the following two tariff rates to EU-origin goods: the US Most Favored Nation (MFN) tariff rate or a 15% tariff rate consisting of the MFN tariff and the reciprocal tariff. Furthermore, starting September 1, 2025, the US commits to applying MFN tariffs only to the following EU products: non-renewable natural resources (including cork), all aircraft and aircraft parts, and generic pharmaceuticals, including their raw materials and chemical precursors. The US and EU agree to consider other sectors and products important to their respective economies and value chains for inclusion in the list of products subject only to MFN tariffs.

The detailed rules also stipulate that US tariffs on most EU goods, including automobiles, pharmaceuticals, semiconductor chips, and timber, will not exceed 15%.

EU to purchase US energy products, artificial intelligence chips, and defense equipment

The statement also clarified that EU purchases of US energy products, including liquefied natural gas, oil, and nuclear power products, are expected to reach $750 billion by 2028. Furthermore, the EU pledged to purchase at least $40 billion worth of US artificial intelligence chips for the construction of European data centers. The statement predicts that European companies will invest an additional $600 billion in strategic US sectors by 2028. Furthermore, the EU plans to significantly increase purchases of US military and defense equipment.

EU: Will continue to negotiate further tariff reductions with the US

According to EU sources, the joint statement was reached after intensive negotiations between Maroš Šefčović, the European Commission's Commissioner for Trade and Economic Security, and US Secretary of Commerce Lutnik and US Trade Representative Greer.

European Commission President Ursula von der Leyen stated that the EU will continue to work with the United States to agree on further tariff reductions and identify additional areas of cooperation.

Next, the European Commission, with the support of EU member states and the European Parliament, will proceed with implementing the key elements of the agreement in accordance with relevant internal procedures. The EU will also negotiate a fair, balanced, and mutually beneficial trade agreement with the United States based on the agreed framework and applicable procedures.