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US and EU Strike Preliminary Trade Deal Setting 15% Tariffs

Replacing threatened 30% levies with a 15% tariff in return for EU commitments on $750 billion of energy purchases alongside $600 billion of investments, the framework now awaits legal drafting alongside EU ratification.

Overview

  • The US will impose 15% tariffs on most EU imports and maintain 50% duties on steel and aluminum under the preliminary framework.
  • The EU has confirmed commitments to purchase $750 billion in US energy products and invest $600 billion in the American economy through 2028.
  • European leaders across the political spectrum criticized the deal as disproportionately favoring US interests and undermining EU trade leverage.
  • European markets responded with gains in automaker stocks and four-month highs in EU indices while bond yields declined amid eased trade tensions.
  • The framework must be translated into detailed legal text and secure approval from EU member states and the European Parliament before taking effect.