The White House unveiled details for its trade deal with the European Union (EU) on Thursday.
The Trump administration said its EU counterparts have agreed to eliminate all tariffs on industrial goods imported from the U.S. and to widen preferential market access to U.S. seafood and agricultural products.
In exchange, most EU exports — notably pharmaceuticals, semiconductors and lumber — will be taxed at 15 percent. The group of 27 member nations also agreed to ensure its companies invest $600 billion in the U.S. and to purchase at least $750 billion worth of U.S. energy over the next three years, according to the White House.
“This Framework Agreement will put our trade and investment relationship – one of the largest in the world — on a solid footing and will reinvigorate our economies’ reindustrialization,” the statement reads. “It reflects acknowledgement by the European Union of the concerns of the United States and our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power.”
“The United States and the European Union intend this Framework Agreement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship,” it added.
President Trump and European Commission President Ursula von der Leyen announced the sweeping trade deal last month at the president’s Turnberry golf course in Scotland. At the time, they said the deal would impose 15 percent tariffs on most European goods, holding off a threat by Trump to impose a 30 percent rate if a deal wasn’t reached by August.
Trump in July called the deal “the biggest deal ever made” and von der Leyen said it was a “huge deal” that would bring stability and predictability.
Von der Leyen was at the White House on Monday for a group meeting with Trump to discuss ending the Ukraine-Russia war, alongside other European leaders and Ukrainian President Volodymyr Zelensky.
Under the agreement detailed Thursday, the EU has agreed to purchase at least $40 billion worth of U.S. artificial intelligence chips for its computing centers. It also allows for the 15 percent tariff on pharmaceuticals from European nations to be capped and not combined with other tariffs.
After the EU follows through on lowering tariffs on American goods, U.S. tariffs on cars and car parts will be lowered to 15 percent. The lower rate on European autos and auto parts is a win for the bloc after Trump threatened 30 percent tariffs and it lowers the current tariff rate on Europe’s auto, which is 27.5 percent, CNBC reported.
Additional products expected to be subject to the 15 percent rate starting Sept. 1 include aircraft and aircraft parts, as well as chemical precursors.
EU Trade Commissioner Maros Sefcovic on Thursday called the deal “the most favorable trade deal the U.S. has extended to any partner,” CNBC reported, but suggested that it’s just a first step and that Europe wants to further strengthen its economic relationship with the U.S.
Alex Gangitano contributed to this report, which was updated at 8:23 a.m. EDT
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