WH Details US-EU Trade Deal

The U.S. reached a trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods — half the threatened rate.

The White House in a press release said the deal rebalances the economic relationship between the world's two largest economies and:

• marks a generational modernization of the transatlantic alliance
• provides Americans with unprecedented levels of market access to the EU
• bolsters America's economy and manufacturing capabilities — the EU will purchase $750 billion in U.S. energy and make new investments of $600 billion in the U.S., all by 2028
• enables U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit with the EU

The EU will pay tariffs on autos and auto parts, pharmaceuticals, and semiconductors, though sectoral tariffs on steel, aluminum, and copper will remain unchanged.

Additionally, the EU will "work to address a range of U.S. concerns related to various EU requirements that are burdensome to U.S. exporters, particularly small and medium-sized businesses, including through efforts to eliminate the red tape that U.S. exporters face when doing business in the European Union," the White House said.

The U.S. and EU also agreed to "strengthen economic security alignment to enhance supply chain resilience and innovation" as part of the deal while the EU agreed to purchase significant amounts of U.S. military equipment.

Both sides also recognize "a series of major commercial agreements across key sectors — including energy and semiconductors — that will further expand U.S. exports to the European market."