US, EU Unveil Trade Deal Framework Reducing Tariffs, Boosting Investments

The United States and the European Union have released the first official text of a new transatlantic trade agreement aimed at reducing tariffs and strengthening economic ties. The deal includes a 15% tariff rate on most European goods entering the U.S., with a provision that auto tariffs will decrease once the EU enacts legislative measures to eliminate its tariffs on U.S. goods. The EU has committed to purchasing $750 billion in U.S. energy products and at least $400 billion in artificial intelligence chips, while also pledging $600 billion in investments in the U.S. by 2028. Announced following a meeting between President Donald Trump and European Commission President Ursula von der Leyen at Trump’s golf course in Scotland, the agreement also addresses non-tariff barriers, digital trade, and environmental regulations. This framework is described as putting the trade and investment relationship between the two economies—together representing 44% of the global economy—on solid footing to support reindustrialization and economic growth. However, challenges remain, particularly regarding regulatory alignment and the finalization of terms related to digital policies.