United States and European Union Release Joint Statement Confirming Agreement on Trade Deal Framework

On August 21 local time, the White House issued a joint statement with the European Union confirming that both sides have reached consensus on the framework for a new trade agreement. The European Union followed with its own formal announcement.

According to the White House, the framework outlines 19 core areas of cooperation, encompassing agricultural goods, automobiles, aircraft and other industrial products, semiconductor technology, energy, EU investment in the United States, environmental regulation adjustments, cybersecurity protocols, and digital trade barriers.

The European Union will eliminate tariffs on all U.S. industrial goods and extend preferential market access to a wide range of American agricultural and seafood products, including nuts, dairy, fresh and processed fruits and vegetables, processed foods, seeds, soybean oil, and meat. In addition, the EU will immediately extend the provisions related to lobster outlined in the August 21, 2020 U.S.–EU Joint Statement on Tariffs—originally set to expire on July 31, 2025—and broaden the scope to include processed lobster products.

The United States, in turn, will apply to EU-origin goods the higher of two tariff rates: either the Most Favored Nation (MFN) rate or a composite rate capped at 15 percent, which includes MFN and reciprocal tariffs. Beginning September 1, 2025, the U.S. will apply MFN rates exclusively to specific EU exports, including non-renewable natural resources such as softwood, all aircraft and aircraft components, generic pharmaceuticals and their raw materials, and chemical precursors. Both parties have agreed to consider expanding the MFN-only list to include other sectors deemed vital to their respective economies and supply chains. The agreement also stipulates that U.S. tariffs on most EU goods—including automobiles, pharmaceuticals, semiconductor chips, and timber—will not exceed 15 percent.

The European Union has committed to purchasing U.S. energy products, including liquefied natural gas, oil, and nuclear energy, with total procurement expected to reach USD 750 billion by 2028. Additionally, the EU will acquire at least USD 40 billion worth of American artificial intelligence chips for deployment in European data centers. The statement projects that European companies will invest an additional USD 600 billion in strategic sectors within the United States before 2028. The EU also plans to significantly increase its purchases of U.S. military and defense equipment.
Sources within the European Union confirmed that the joint statement was the result of intensive negotiations between Maroš Šefčovič, European Commissioner for Trade and Economic Security, U.S. Secretary of Commerce Lutnick, and U.S. Trade Representative Greer.

European Commission President Ursula von der Leyen stated that the EU will continue working with the United States to negotiate further tariff reductions and identify additional areas for cooperation.

The European Commission will now begin implementing the key elements of the agreement, supported by EU member states and the European Parliament, in accordance with internal procedures. Based on the agreed framework and applicable processes, the EU will engage with the United States to negotiate a comprehensive trade agreement that is fair, balanced, and mutually beneficial.