The United States and the European Union have finalized details of a sweeping trade framework that lowers tariffs on European automobiles and pharmaceuticals while opening the door to new cooperation on steel and aluminum.
According to a joint statement issued Thursday, the US will cap most sectoral tariffs at 15%, including on autos, chips, and pharmaceuticals.
Tariff reductions on EU autos and auto parts — down from a previous 27.5% — will take effect once Brussels introduces legislation to eliminate tariffs on US industrial goods and expand “preferential market access” for seafood and agriculture.
A senior Trump administration official told reporters the shift could take effect “in weeks” once the EU triggers its legislative process.
Steel, Aluminum, and Energy Commitments
While Washington will retain a 50% tariff on EU steel and aluminum, the two sides pledged to explore quota-based solutions and “ring-fencing” against global overcapacity.
The EU also committed to procure $750 billion worth of US energy products — including LNG, oil, and nuclear power — through 2028. Additionally, Brussels pledged to purchase at least $40 billion in US AI chips and ramp up defense