The U.S. and EU have announced that an agreement has been reached on tariffs and trade just days before increased U.S. tariffs were set to take effect.
According to a fact sheet released by the White House on July 28, 2025, significant provisions of the deal include:
- By 2028, the EU will purchase $750 billion in U.S. energy and make $600 billion in new investments in the U.S.
- The EU will remove significant tariffs, including all tariffs on U.S. industrial goods.
- The U.S. will impose a 15% tariff on EU goods, including on automobiles and their parts, pharmaceuticals, and semiconductors.
- The U.S. will continue to impose a 50% tariff on steel, aluminum, and copper.
- The EU will work to reduce burdensome requirements for U.S. exporters.
- The countries will establish “strong rules of origin” to help ensure trade benefits remain with them.
- The countries will address digital trade barriers and impose no duties on electronic transmissions.
- The EU will purchase U.S. military equipment.
Statements were released by the European Commission and its president, Ursula von der Leyen, this week, addressing the deal and provided the following details:
- On August 1, 2025, the U.S. will impose a 15% tariff on a vast majority of EU exports, including cars and car parts, semiconductors, and pharmaceuticals. Other U.S. sector tariffs will not stack upon the 15% tariff.
- Effective August 1, 2025, the countries will not impose tariffs on strategic products including aircraft and aircraft parts, certain chemicals, certain drug generics, and natural resources.
- The countries will work together to protect the steel, aluminum, and copper sectors by establishing tariff rate quotas for EU exports and reducing the 50% tariffs currently imposed by the U.S.
- The EU will eliminate tariffs on industrial goods from the U.S. and provide better access to EU fishery and agriculture markets.
- The countries will work to further reduce non-tariff barriers and cooperate on economic security.
- The EU will purchase $750 billion of U.S. energy products such as U.S. liquified natural gas, oil, and nuclear energy products over the next three years.
- The EU will purchase €40 billion of U.S. AI chips.
- EU companies have an interest in investing $600 billion in the U.S. by 2029.
How Forvis Mazars Can Help
The two announcements seem to agree in principle although the details are varied or nebulous. Forvis Mazars will continue to monitor the negotiations and provide more details as the trading partners further define the terms of the agreement. Please visit our tariffs resource or subscribe to our weekly publication “From the Hill” to receive the latest updates.