EU and US conclude historic trade agreement: details and future prospects

Chas Pravdy - 27 July 2025 23:44

The European Union and the United States have officially signed a new trade agreement after months of intense negotiations that aimed to improve economic cooperation and reduce trade barriers.
European Commission President Ursula von der Leyen announced that the agreement establishes a unified tariff rate of 15% on most exports from the EU, covering key sectors such as automotive manufacturing, semiconductors, and pharmaceuticals.
She emphasized that this rate is the maximum ceiling and will be applied without additional surcharges or tariffs. Furthermore, the deal includes provisions for zero tariffs on a range of strategic goods, including aircraft and components, certain chemicals, semiconductor manufacturing equipment, specific agricultural products, natural resources, and critical raw materials.
Von der Leyen highlighted ongoing efforts to expand this list further through continued negotiations. On steel and aluminum, the EU and US face common challenges related to global overproduction.
The agreement aims to foster fair global competition by reducing tariffs and introducing a quota system to manage excess supplies.
The pact also focuses on energy security: the EU plans to replace Russian gas and oil with significant imports of American LNG, oil, and nuclear fuel. Ursula von der Leyen also committed to providing broader market access for American goods, seeking to deepen the partnership and economic ties.
Historically, the negotiations have been complex, with the EU preparing countermeasures worth €93 billion in case talks failed or US tariffs threatened to escalate.
This landmark agreement symbolizes a significant step towards reinforced transatlantic cooperation, stability, and shared prosperity.

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