Overview

• The US and EU reached a framework agreement to replace a threatened 30% tariff on most EU exports with a 15% reciprocal duty, effective August 1 pending ratification of implementation texts.
• Under the deal, the EU will commit $750 billion to purchase US energy supplies and invest an additional $600 billion in the American economy.
• Steel and aluminum will remain subject to 50% US tariffs, while strategic industries—including aerospace, semiconductors and select agricultural products—are exempt from the new 15% duty.
• The agreement establishes a standing mechanism to pursue further tariff cuts, address non-tariff barriers and enhance economic-security collaboration between the two sides.
• European capitals and industries are finalizing domestic plans and voicing mixed reactions, with German leaders praising stability and French officials and key exporters warning of disproportionate sectoral costs.