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3h ago

U.S. and EU Unveil 15% Tariff Framework, Leave Sensitive Sectors Unsettled

The short, nonbinding text sets a de‑escalation baseline, leaving major sectors for later negotiation.

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European Commissioner for Trade Maros Sefcovic addresses the media on the EU-US trade deal, in Brussels, Belgium, August 21, 2025. REUTERS/Yves Herman
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Overview

  • The released 3½‑page framework sets a 15% U.S. tariff on most EU goods, covering roughly 70% of EU exports to the United States.
  • Carve‑outs include aircraft and parts plus generic pharmaceuticals and ingredients, while U.S. cars and other industrial goods would face a zero rate in the EU.
  • The auto relief would apply retroactively from August 1 if the EU introduces implementing legislation, which EU officials say they will do.
  • Wine and spirits received no exemption from the 15% rate, while the EU suspended retaliatory tariffs on U.S. goods until February 5, 2026.
  • Steel tariff‑rate quota proposals and other sector details remain unresolved, the commercial pledges for $750 billion in U.S. energy purchases and $600 billion in investment are nonbinding, and economists caution the higher tariffs could raise prices and slow growth.