On July 24, 2025, the European Union and the United States reached a comprehensive trade agreement aimed at streamlining tariffs, improving cooperation on key industries, and enhancing economic security on both sides of the Atlantic.
Key elements of the agreement:
- A unified 15% tariff ceiling now applies to the vast majority of EU exports to the US. This covers critical sectors such as automobiles, semiconductors, and pharmaceuticals.
- Zero-for-zero tariffs have been agreed on for strategic goods including aircraft parts, AI chips, generics, certain chemicals, agricultural products, and critical raw materials.
- Tariff reductions and new quotas on steel and aluminium will help ensure fair global competition and reduce trade friction.
- Increased energy cooperation, with the EU replacing Russian fossil fuels through greater imports of US LNG, oil, and nuclear fuels.
Business impact
For EU exporters, the deal provides long-awaited clarity and removes tariff unpredictability. This is crucial for planning, pricing, and long-term investment strategies.
The agreement also opens doors for more US products to enter the European market, offering consumers more choice and enhancing competitiveness among European companies.
A strategic economic alliance
The EU and the US are each other’s largest trading partners, with a trade volume of approximately $1.7 trillion annually. Together, they represent a market of 800 million people and nearly 44% of global GDP. The agreement reinforces this vital partnership with practical measures that benefit both economies.
