President Donald Trump struck a trade deal with the European Union, or EU, which fundamentally rebalances the economic relationship between the world’s two largest economies.
The deal marks a generational modernization of the transatlantic alliance and will provide Americans with unprecedented levels of market access to the European Union, the White House noted. The deal bolsters America’s economy and manufacturing capabilities. The EU will purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028.
The trade agreement with the European Union will enable U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit with the European Union.
The EU has committed to remove significant tariffs, including the elimination of all EU tariffs on U.S. industrial goods exported to the EU, creating enormous opportunities for American-made and American-grown goods to compete and win in Europe.
As part of President Trump’s strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15 percent, including on autos and auto parts, pharmaceuticals, and semiconductors. However, the sectoral tariffs on steel, aluminum, and copper will remain unchanged at 50 percent.
This new tariff regime will generate tens of billions of dollars in revenue annually and help to close the longstanding trade imbalance between the United States and Europe by encouraging local sourcing, reshoring production, and ensuring that foreign producers contribute their fair share to the American economy.
The United States and the European Union intend to work together to address non-tariff barriers affecting trade in food and agricultural products, including streamlining requirements for sanitary certificates for U.S. pork and dairy products.
The United States and the European Union also intend to address unjustified digital trade barriers.
Additional commercial agreements across key sectors, including energy and semiconductors, will further expand U.S. exports to the European market. The European Union also agreed to purchase significant amounts of U.S. military equipment.
In just six months, President Trump has reaffirmed the United States as the world’s most attractive destination for investment and the unrivaled leader in innovation, research, and advanced manufacturing.
President Trump has challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to the historic trade deficit.
The U.S.-EU trade agreement opens up historic market access to the second largest economy in the world, reestablishing the strong long-term relationship between the United States and its key ally the European Union.
