European Union and U.S. announce trade agreement, modifying tariffs on most goods

The European Union (EU) and the U.S. announced a trade agreement July 27 that sets a 15% tariff on most EU goods, effective Aug. 1.

The 15% tariff applies to all EU exports currently subject to reciprocal tariffs, including automobiles and automobile parts, pharmaceuticals and semiconductors. It does not apply to the U.S. tariff on steel, aluminum and copper imports, which remains unchanged at 50%. The EU and the U.S. are negotiating an alternative rate for these goods.

The trade deal also impacts U.S. tariffs on EU aircraft and aircraft parts, some chemicals, generic drugs and natural resources, which will “go back to pre-January levels,” according to a press release from the EU.

Additionally, as part of the agreement, the EU will purchase $750 billion in U.S. energy, along with $600 billion in new investments, by 2028.