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yesterday

U.S. and EU Publish Trade Framework Capping Many Tariffs at 15% as Washington Expands 50% Metals Duties

The short, nonbinding text conditions U.S. auto-duty relief on the EU introducing tariff‑cut legislation.

A drone view shows an employee working on the production line of aluminium products at a factory in Huaibei, Anhui province, China February 11, 2025. China Daily via REUTERS/File Photo
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Overview

  • An updated joint statement sets a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber, while applying only MFN rates from September 1 on EU aircraft and parts, generic drugs, chemical precursors and cork.
  • U.S. relief from the current 27.5% auto and parts tariff will take effect once Brussels formally introduces its tariff‑cut bill, with the lower rate starting on the first day of that month and officials saying it could arrive within weeks.
  • The EU text records intentions to procure $750 billion of U.S. energy and to channel $600 billion of investment into U.S. strategic sectors by 2028, plus at least $40 billion in U.S. AI chips, though these figures are described as intended or expected.
  • Key items remain unresolved, with wine and spirits not exempted from the 15% rate and steel quota arrangements left for further talks; both sides also pledge to address digital trade barriers and the EU says it will not adopt network usage fees.
  • Separately, the Commerce Department immediately added 407 derivative categories to 50% steel and aluminum tariffs, covering heavy equipment, railcars, wind turbines, cranes, furniture, compressors and pumps, plus EV electrical steel and auto exhaust parts, and Treasury says tariff revenues will rise substantially.