U.S., EU lock in trade deal lowering tariffs
By: Andrea Shaial
and David Lawder
Reuters
WASHINGTON - The United States and the European Union on August 21 [2025] locked in a framework trade deal reached last month [07/2025] that include a 15% tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.
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In a 3 1/2-page joint statement, the two sides listed the commitments made, including the EU's pledge to eliminate tariffs on all U.S. industrial goods and to provide preferential market access for a wide range of U.S. seafood and agricultural goods.
..... Washington will take steps to reduce the current 27.5% U.S. tariffs on cares and car parts, a huge burden for European car-makers, once Brussels introduces the legislation needed to enact promised tariff cuts on U.S. goods, it said.
..... President Donald Trump and European Commission President Ursula von der Leven announce the deal on July 27 [2025] at Trump's luxury golf course in Turnberry, Scotland, after an hour-long meeting that followed moths of negotiations.
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The two leaders met again august 18 [2025] as part of negotiations aimed at ending Russia's war in Ukraine, with both lauding their trade framework deal as an historic accomplishment. The statement said the deal could be expanded over time to cover additional areas and further improve market access.
..... A senior administration official, speaking on condition of anonymity because they were not authorized to speak public, said European car-makers could see relief from the current U.S. tariff within "hopefully weeks."
..... The joint statement was "a play to hold each other accountable" and ensure that both sides carried och the pledges announced last month, [07/2025] the official said.
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The statement said U.S. tariff relief on autos and auto parts would kick in on the first day of the month in which the EU introduced the legislation, offering the prospect of retroactive rifler for car-makers. It was not immediately clear when Brussels would start the legislative process.
..... It reiterated the EU's intention to procure $750 billion in U.S. liquefied natural gas, oil and nuclear energy products, plus an additional $40 billion of U.S. made artificial intelligence chips.
..... It also repeated the intentions for EU companies to invest an additional $600 billion across U.S. strategic sectors through 2028.
..... The EU-U.s. trade deal does not include wine and spirits, European Union Trade Commissioner Maros Sefcovic said on August 21. [2025] adding that the door was not closed to tariff reductions for the sector and others are included in the deal.
..... He made the comments after the European Union and the United States detailed commitments made in a deal reached last month [07/2025] that includes a 15% tariff on most import from the bloc, including autos, pharmaceuticals, semiconductors and lumber.
..... "This one we didn't get in. But I can tell you that there is clear commitment form the European Commission to put it on the table," Sefocvic said, referring to wine and spirits.