The United States will cap tariffs on European pharmaceutical products, automobiles and semiconductors at a maximum of 15%, according to a joint statement issued by Washington and Brussels on Thursday.
Under the newly disclosed terms of the U.S.-EU trade agreement, Thursday, tariffs on European pharmaceuticals and semiconductors will be capped at 15%, aligning with most other sectors covered in the deal. However, in order to lower the steep 27.5% tariff on European car exports to 15%, the EU must first pass legislation that eliminates tariffs on U.S. goods to zero.
The trade agreement was initially declared during a meeting between President Trump and European Commission President Ursula von der Leyen in Scotland last month.
As part of the framework, the United States also plans to roll back tariffs starting September 1 on certain natural resources such as cork, all aircraft and related parts, as well as generic pharmaceuticals and their chemical components, restoring them to pre-January levels.
European Commissioner for Trade Maroš Šefčovič described the framework as an initial step that could expand over time to include additional exemptions. Meanwhile, one of the key exemptions requested by the EU for the wine and spirits sector was not included in Thursday’s agreement. Šefčovič acknowledged the setback and stated that will continue negotiations with the U.S.
The deal includes a commitment from the EU to purchase $750 billion worth of U.S. energy, including liquefied natural gas, oil, and nuclear energy, along with $40 billion worth of U.S. AI chips through 2028. It also states that European companies are expected to invest an additional $600 billion in strategic sectors in the U.S. by that year.
The development comes as Trump’s global trade strategy begins to take shape, following his administration’s move to finalize tariff rates on imports from dozens of countries.
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