EU, US Formalize Trade Framework to Enhance Reciprocity and Market Access

The Joint Statement establishes several key commitments:

• tariff arrangements: the European Union will eliminate tariffs on all US industrial goods and grant preferential access to a wide range of US seafood and agricultural products, including dairy, pork, nuts, fruits, processed foods and soybean oil. Additionally, the lobster tariff arrangement that expired on 31 July 2025 will be reinstated and expanded to processed lobster. Further, the United States will apply either its most favoured nation (MFN) tariff or a combined rate capped at 15% (inclusive of reciprocal tariffs) on most EU goods, with certain strategic sectors (pharmaceuticals, semiconductors, lumber) subject to a ceiling of 15%. From 1 September 2025, the United States will apply only MFN tariffs to cork, aircraft and aircraft parts, along with generic pharmaceuticals;
• automobiles: the tariff imposed pursuant to section 232 of the Trade Expansion Act of 1962 on EU automobiles and parts will not exceed a combined 15%. For vehicles with MFN tariffs at or above 15%, no Section 232 tariffs will apply;
• steel and aluminium: parties will explore ring-fencing their respective domestic markets and pursue joint measures to manage global overcapacity and secure supply chains;
• energy and technology: the European Union will commit to procuring US liquefied natural gas, oil, nuclear energy products (worth USD 750 billion by 2028) and USD 40 billion in US AI chips. Both sides will align technology security standards to prevent leakage to destinations of concern;
• investment and defence: European companies are expected to invest USD 600 billion in the United States by 2028. The European Union will also increase procurement of US defence equipment;
• regulatory cooperation: commitments include mutual recognition of automotive standards, enhanced cooperation between standards bodies, conformity assessments in industrial sectors, and resolution of sanitary certification issues in food trade. The European Union will address US concerns regarding the Deforestation Regulation, Carbon Border Adjustment Mechanism (CBAM) application to SMEs, and burdens under the Corporate Sustainability Due Diligence and Reporting Directives;
• digital trade: both sides pledge not to impose customs duties on electronic transmissions, to oppose network usage fees, and continue to support the multilateral moratorium on customs duties on electronic transmissions at the World Trade Organization and seek the adoption of a permanent multilateral commitment;
• customs: the European Union has expressed its intention to consult with the United States on digitalization of trade procedures and implementation of the legislation currently proposed on EU Customs Reform; and
• other commitments: cooperation will extend to rules of origin, intellectual property protection, labour rights (including forced labour elimination), cybersecurity recognition agreements, critical minerals, export controls, and enhanced alignment on economic security and supply chain resilience.

Additionally, the European Commission will initiate negotiations with the United States with a view to concluding a broader agreement on reciprocal, fair and balanced trade. Both sides have underlined their intention to expand tariff reductions, identify further areas of regulatory cooperation, and foster a more secure and mutually advantageous trading environment. As such, the Joint Statement represents not the conclusion, but the beginning of a process aimed at deepening transatlantic economic integration and reinforcing the global role of the EU-US partnership.

More information relating to tariff measures can be found on IBFD's International Guide on Global Trade.