United States–European Union Framework on Reciprocal Trade

The United States and the European Union have agreed on a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade.

• Main action: The Framework Agreement commits the European Union to eliminate tariffs on all US industrial goods, provide preferential market access for specified US seafood and agricultural products, and includes US commitments to apply the higher of MFN or a 15% tariff on originating EU goods; it also sets procurement and investment pledges such as an EU expected offtake of $750 billion in US liquified natural gas, oil and nuclear energy products through 2028, and at least $40 billion in US AI chips for EU computing centres.
• Background and implementation details: The Framework covers tariff mechanics (including interaction with Section 232 tariffs and MFN rates), rules of origin, commitments on standards mutual recognition, cooperation on energy security, defence procurement from the US, facilitation of mutual investments (mutual investment stocks exceed $5 trillion and EU firms are expected to invest an additional $600 billion in the US through 2028), and regulatory discussions on CBAM, CSDDD, and CSRD to avoid undue trade restrictions.