U.S.-EU Trade Accord: New Era for Transatlantic Commerce

The United States and the European Union have secured a comprehensive trade agreement, signaling an end to prolonged uncertainty affecting businesses and consumers across both regions.

Under the new framework, nearly all EU goods entering the U.S. will be subject to a 15% baseline tariff, down from higher previous rates, particularly benefiting sectors such as automotive, semiconductors, and pharmaceuticals. However, the U.S. is set to review its trade positions on chips and pharmaceuticals separately, which could lead to further negotiations.

Significant highlights of this deal include zero-for-zero tariffs on all aircraft and their components, certain chemicals, generic drugs, and critical raw materials, with potential additions in the future. Moreover, European steel and aluminum tariffs remain at 50% but are expected to transition to a quota system eventually. The EU has committed to strategic purchases worth $750 billion in areas like energy and defense and will invest $600 billion in the U.S. over the upcoming term.

(With inputs from agencies.)