20:32 23 August 2025
US and EU Announce New Trade Agreement
The United States and the European Union have announced the signing of a framework agreement on “mutual, fair and sustainable” trade. The deal, reached after intensive negotiations between EU Trade Commissioner Maroš Šefčovič and US Commerce Secretary Howard Lutnick, aims to ease economic tensions and restore predictability in transatlantic relations.
Under the agreement, Brussels will remove tariffs on all US industrial goods and open its market to a broader range of American agricultural products. In return, Washington will maintain 15 percent tariffs on most EU exports, including cars, pharmaceuticals, and semiconductors, while granting lower tariffs for select goods such as aircraft parts and generic medicines.
A key element of the deal is Europe’s investment commitments. By 2028, the EU will purchase US liquefied natural gas, oil, and nuclear products worth $750 billion, alongside at least $40 billion in American AI chips. European companies are also expected to invest an additional $600 billion in strategic US sectors.
“This is a historic moment for transatlantic trade,” Lutnick emphasized.
Critics, however, argue that the costs of stabilizing the relationship will fall primarily on the European side.
(EURACTIV)
