The U.S. and Europe Release Details of New Trade Pact

The U.S. and European Union (EU) have revealed details about their new trade deal that covers goods ranging from aircraft and automobiles to pharmaceuticals and commodities.

The four-page framework expands on the trade deal that was struck between officials in Washington, D.C. and Brussels in July. It says that the U.S. will apply a 15% tariff to nearly all European goods, excluding aircraft and aircraft parts, generic pharmaceuticals, and some natural resources such as cork that aren’t available within America.

Notably, the U.S. will maintain its 27.5% tariff on automobiles from Europe until the EU eliminates its import duties on U.S. goods such as industrial components and seafood. Once the EU has removed its tariffs, the U.S. will cut its tariffs on motor vehicles to 15%, according to a news release.

Energy Products

The EU is also planning to increase its purchases of U.S. energy products such as liquefied natural gas (LNG), crude oil, and nuclear power. The trading bloc will also spend at least $40 billion on American-made artificial intelligence (AI) microchips for data centers.

Details of the new trade pact come after European leaders agreed to a near-blanket 15% U.S. import tariff in July of this year. That deal has been widely criticized by the media and business leaders across Europe as lopsided, economically damaging, and likely to harm growth across the EU.

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