The White House announced a framework on an agreement on reciprocal, fair, and balanced trade between the United States (US) and the European Union (EU). The agreement outlines several key commitments aimed at strengthening the US & EU trade and investment relationship. The core of this agreement is designed to enhance market access, reduce trade barriers, and foster strategic economic cooperation.

• EU Tariff Elimination and Preferential Market Access – The European Union intends to eliminate tariffs on all U.S. industrial goods and provide preferential market access for a wide range of U.S. seafood and agricultural goods, including products such as tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat. The EU will also immediately take steps to extend and expand the scope of the tariff agreement on lobster to include processed lobster.

• US Tariff Adjustments, including Section 232 Tariffs – The United States commits to applying the higher of its Most Favored Nation (MFN) tariff rate or a 15 percent tariff (comprised of MFN and a reciprocal tariff) on originating EU goods, and will apply only the MFN tariff to specific products like unavailable natural resources, aircraft, and generic pharmaceuticals. More significantly, the U.S. intends to promptly ensure that the combined tariff (MFN plus Section 232 tariffs) on EU pharmaceuticals, semiconductors, and lumber does not exceed 15 percent. Furthermore, once the European Union formally introduces a legislative proposal for its tariff reductions, the U.S. will reduce Section 232 tariffs on automobiles and automobile parts originating from the EU: no Section 232 tariffs will apply if the MFN tariff is 15 percent or higher, and a combined 15 percent rate will be applied for goods with lower MFN rates.

• Major EU Procurement from the US – The European Union intends to make substantial procurements from the U.S., including an expected $750 billion worth of liquified natural gas, oil, and nuclear energy products through 2028. Additionally, the EU plans to purchase at least $40 billion worth of U.S. AI chips for its computing centers and will collaborate with the U.S. on adopting and maintaining technology security requirements to prevent technology leakage to destinations of concern.

• Significant European Investment in the United States – Reflecting a strong commitment to the transatlantic partnership, European companies are expected to invest an additional $600 billion across strategic sectors in the United States through 2028. This highlights the European Union’s recognition of the United States as a secure and innovative destination for foreign investment.

• Addressing Non-Tariff Barriers and Standards Cooperation – Both the U.S. and the EU commit to reduce or eliminate non-tariff barriers. This includes an intention to accept and provide mutual recognition to each other’s standards for automobiles and enhance technical cooperation for standards development in key sectors. They also commit to addressing non-tariff barriers in food and agricultural products, such as streamlining requirements for sanitary certificates. Furthermore, the European Union commits to working on concerns raised by U.S. producers and exporters regarding the EU Deforestation Regulation, the Carbon Border Adjustment Mechanism (CBAM), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Corporate Sustainability Reporting Directive (CSRD), with a view to avoiding undue restrictions on transatlantic trade. Lastly, they commit to addressing unjustified digital trade barriers, with the EU confirming it will not adopt or maintain network usage fees and both sides agreeing not to impose customs duties on electronic transmissions.

In addition to the summary above the original White House Statement may be found here.

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