The European Union and the United States unveiled a new trade framework that caps US tariffs on European goods at 15 percent, secures exemptions for key industries, and sets joint pledges on energy, digital trade, and supply chain security. The announcement follows months of negotiation and is the first major trade move since US President Donald Trump and European Commission President Ursula von der Leyen met in Scotland in July.
Tariff Cap and Core Provisions
EU Trade Commissioner Maroš Šefčovič described the agreement as a first step that can expand to more sectors. The framework grants exemptions for aircraft parts, generic pharmaceuticals, and chemical precursors. Tariffs on cars and car parts will be lowered, and both sides pledged cooperation on steel and aluminium overcapacity. The joint statement emphasizes reducing barriers, strengthening supply chains, and fostering a level playing field for businesses.
Implementation Timeline and Scope
Šefčovič said the Commission aims to start the legislative process later this month so the car industry can benefit retroactively from the 15 percent cap from 1 August. The agreement is intended as a foundation for further talks on market access, regulatory cooperation, and dispute resolution.
Political Context and Comparisons
Šefčovič called the framework the most favourable trade deal the US has done with any partner. The remark drew comparisons with the UK, which earlier accepted a 10 percent baseline tariff in its own arrangement with Washington. A senior Commission official noted EU exemptions on future US tariffs for pharmaceutical products and clarified that the EU’s 15 percent rate includes existing duties.
Reactions in Washington and Brussels
US Commerce Secretary Howard Lutnick welcomed the framework, citing new European commitments to invest hundreds of billions of euros in US energy and infrastructure. On the EU side, Anna Cavazzini, chair of the European Parliament’s internal market committee, criticized the deal as proof that blackmail tactics work and warned it signals a capitulation that weakens the global trade order. Bernd Lange, chair of the Parliament’s trade committee, argued the statement does not secure sustainable investment conditions, adding that combined tariffs give the US a competitive advantage that could hurt the European economy.
Next Steps
Officials cautioned that the framework is only the beginning. Šefčovič stressed that broader negotiations on regulatory cooperation and dispute resolution still lie ahead, with the goal of expanding sectoral coverage and delivering stable, predictable trade relations.
Conclusion
The new EU US trade framework sets a 15 percent tariff cap, carves out key industrial exemptions, and outlines cooperation on strategic issues. While welcomed by some for bringing stability and predictability, it faces criticism within Europe over competitiveness and long term balance. The next phase of negotiations will determine how far the framework can advance market access and regulatory alignment.