The US and Europe have officially finalized a framework trade agreement, with hopes that tariffs on automobiles will be reduced to 15% in the coming weeks.

The United States and the European Union officially finalized a framework trade agreement on Thursday that includes a 15% tariff on most EU imports, including automobiles, pharmaceuticals, semiconductors, and lumber. In a three-and-a-half-page joint statement, both sides outlined their commitments, with the EU pledging to eliminate tariffs on all US industrial goods and provide preferential market access for a wide range of American seafood and agricultural products. The statement said that once the EU enacts legislation to implement the tariff reductions on US goods, the US will take steps to reduce the current 27.5% tariff on automobiles and parts. The tariff reduction for automobiles and parts will take effect on the first day of the month that the EU introduces the relevant legislation, potentially providing retroactive relief for car manufacturers.