The United States and the European Union have struck a major trade agreement that averts a growing tariff standoff and sets a new path for transatlantic economic cooperation.
Under the framework deal, the US will impose a 15% import tariff on most EU goods—a significant reduction from the previously threatened 30%. While this rate still exceeds the EU’s ambition for zero-for-zero tariffs, negotiators say it represents a critical compromise to prevent a broader trade war.
The agreement also includes major investment pledges from the EU, totaling $600 billion in US military equipment and an additional $750 billion in American energy infrastructure.
Although the deal sidesteps immediate escalation, key sectors such as aerospace, certain chemicals, and critical raw materials are excluded from the tariff structure for now. As a framework agreement, further negotiations are expected in the coming weeks to finalize technical terms.
Notably, no changes have been made to the existing steel tariffs, which remain at 50% globally, in line with former President Trump’s policy. However, the European Commission stated that both sides will collaborate to address global overcapacity and aim to reduce trade barriers via future tariff cuts and a quota-based system.
Despite the breakthrough, concerns persist. Bernd Lange, chair of the European Parliament’s trade committee, criticized the 15% tariff as “imbalanced”, warning that the EU’s heavy investment commitments could strain domestic development.
A US official confirmed that the deal is contingent on compliance reviews, and President Trump retains authority to raise tariffs if EU investment pledges are not fulfilled.
VietnamSteel by Hoa Sen Group
