The United States and the European Union have announced a new Framework Agreement focused on reciprocal, fair, and balanced trade. The agreement aims to address longstanding concerns over trade imbalances and strengthen economic ties between the two partners.
According to the joint statement, the framework seeks to put the U.S.-EU trade relationship on a more stable foundation while supporting efforts to reindustrialize both economies. The agreement is described as an initial step that could be expanded in the future to cover more areas of cooperation.
Among its key provisions, the European Union plans to eliminate tariffs on all U.S. industrial goods and provide preferential access for a variety of American seafood and agricultural products. The EU will also extend tariff benefits previously granted for lobster products.
The United States has committed to applying 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, certain products such as natural resources, aircraft parts, and generic pharmaceuticals will only face MFN tariffs. Both sides have agreed to review other sectors for possible inclusion under these terms.
Tariffs related to Section 232 of the Trade Expansion Act of 1962 are addressed in the agreement. The U.S. will ensure that combined tariffs on EU pharmaceuticals, semiconductors, and lumber do not exceed 15 percent. Reductions in automobile tariffs are tied to legislative actions by the EU regarding their own tariff reductions.
Both parties plan further negotiations on rules of origin so that benefits accrue mainly within their respective territories.
Energy cooperation is another focus area. The EU intends to purchase $750 billion worth of U.S. liquified natural gas, oil, and nuclear energy products through 2028, along with at least $40 billion in U.S.-made AI chips for computing centers.
On investment, mutual stocks now exceed $5 trillion; European companies are expected to invest an additional $600 billion in strategic sectors across the United States by 2028.
Defense procurement from U.S. companies by EU members is set to increase substantially with support from Washington as part of ongoing efforts toward deeper transatlantic defense industrial cooperation and NATO interoperability.
Other commitments include working together on reducing non-tariff barriers—such as recognizing each other's automobile standards—and facilitating technical cooperation between standards organizations on both sides of the Atlantic.
Food safety requirements are being reviewed with an aim toward streamlining sanitary certificates for pork and dairy exports from the United States into Europe.
Environmental regulations also feature: "Recognizing that production of the relevant commodities within the territory of the United States poses negligible risk to global deforestation, the European Union commits to work to address the concerns of U.S. producers and exporters regarding the EU Deforestation Regulation, with a view to avoiding undue impact on U.S.-EU trade."
Small- and medium-sized businesses affected by carbon border adjustments will see increased flexibility under new CBAM implementation measures from Brussels.
The agreement addresses corporate sustainability reporting obligations: "The European Union commits to undertake efforts to ensure that the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) do not pose undue restrictions on transatlantic trade..."
Telecommunications conformity assessment bodies in America can be designated as Notified Bodies under existing agreements for tasks including cybersecurity compliance related to radio equipment sold in Europe.
Export restrictions imposed by third countries on critical minerals will be jointly monitored while intellectual property rights protection remains a discussion point going forward.
Labor rights protections—including eliminating forced labor—are included among shared objectives for supply chain integrity.
Digital trade receives attention: "In that respect, The European Union confirms that it will not adopt or maintain network usage fees..." Both sides intend not only continued support but also advocacy at international forums like the World Trade Organization for permanent moratoriums against customs duties on electronic transmissions.
Customs digitalization initiatives are planned alongside closer alignment around economic security measures such as inbound/outbound investment reviews and export controls targeting unfair competition from third countries.
Implementation steps for this Framework Agreement will proceed according to internal procedures within both governments.
