The European Union and the United States have released a Joint Statement outlining a new framework for transatlantic trade and investment. The announcement formalizes and builds on the political agreement reached between European Commission President Ursula von der Leyen and U.S. President Donald Trump on July 27.
According to the statement, both parties are committed to restoring stability and predictability in trade and investment between the EU and the U.S., aiming to benefit businesses and citizens on both sides of the Atlantic. The Joint Statement marks an initial step toward increasing trade volumes and improving market access across additional sectors.
Negotiations leading up to this agreement were conducted by EU Trade Commissioner Maroš Šefčovič alongside U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.
A central element of the agreement is a new tariff regime introduced by the U.S., setting a maximum all-inclusive tariff rate of 15% for most EU exports, covering strategic sectors such as cars, pharmaceuticals, semiconductors, and lumber. Products already subject to Most Favoured Nation (MFN) tariffs at or above 15% will not face extra duties.
For automotive products, including cars and car parts, the agreed 15% ceiling will be implemented while the EU begins procedures for reducing tariffs on U.S. goods.
Starting September 1, certain product groups—such as unavailable natural resources like cork, aircraft and aircraft parts, generic pharmaceuticals with their ingredients, and chemical precursors—will be subject only to MFN tariffs under a special regime. Both sides also plan to expand this arrangement to more categories in future negotiations.
The statement also notes plans for joint efforts to address overcapacity in steel and aluminium sectors through measures like tariff rate quotas for EU exports of these materials. The aim is also to strengthen secure supply chains between both economies.
While maintaining its stance that high tariffs negatively impact global economic growth, the European Union states that this negotiated outcome avoids further escalation in trade tensions while providing a platform for continued dialogue in areas of shared strategic interest.
Transatlantic trade is recognized as one of the world’s most valuable economic relationships; it was valued at €1.6 trillion annually in recent years. This deal aims to safeguard that relationship along with millions of jobs within the EU.
President Ursula von der Leyen commented: “The European Union will always pursue the best outcomes for its citizens and businesses. Faced with a challenging situation, we have delivered for our Member States and industry, and restored clarity and coherence to transatlantic trade. This is not the end of the process, we continue to engage with the US to agree more tariff reductions, to identify more areas of cooperation, and to create more economic growth potential. At the same time, we continue to diversify our international trade partnerships, creating EU jobs and prosperity.”
Next steps involve swift implementation by the European Commission—with support from Member States and Parliament—of key aspects outlined in this deal according to internal procedures. Further negotiations are expected toward establishing an agreement focused on fairer trade relations within this new framework.
Following this political accord with Washington, Brussels has suspended rebalancing measures adopted on July 24 effective August 7.
Over recent years transatlantic commerce has doubled: by 2024 it surpassed €1.6 trillion annually—including €867 billion in goods traded per year—and over €4 billion worth of goods/services exchanged daily across borders [https://ec.europa.eu/trade/policy/countries-and-regions/countries/united-states/]. In 2022 alone mutual investments reached €5.3 trillion.
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