US and EU Sign Major Trade Agreement with New Tariffs

The US and the European Union have officially signed a framework trade agreement, which provides for a 15% tariff by the US on most European goods, including cars, pharmaceutical products, semiconductors, and timber. In response, the EU has promised to remove tariffs on all American industrial products and ensure preferential access for certain types of American seafood and agricultural goods.

According to a US administration official, the tariffs on cars and their spare parts could be reduced in the coming weeks, after Brussels introduces the relevant legislative changes. The parties also intend to expand the agreement, improve market access opportunities, and cooperate on ensuring the stability of supplies in energy, technology, and steel and aluminum.