White House Unveils Details Of ‘Historic’ Trade Deal With European Union
The White House on Thursday released new details of what it called a “historic” trade deal with the European Union, confirming sweeping tariff cuts, energy purchases, and investment pledges as part of a deal first announced last month in Scotland.
Under the agreement, the EU will eliminate tariffs on all American industrial goods and give preferential market access to U.S. agriculture and seafood products. In exchange, the U.S. will cap most tariffs on European imports at 15%, including on key sectors like semiconductors, pharmaceuticals, and lumber.
“This Framework Agreement will put our trade and investment relationship – one of the largest in the world — on a solid footing and will reinvigorate our economies’ reindustrialization,” a joint statement declared. “It reflects acknowledgement by the European Union of the concerns of the United States and our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power.”
The announcement follows last month’s summit between President Donald Trump and European Commission President Ursula von der Leyen, where the outlines of the deal were hashed out. The finalized framework adds clarity and specificity to what Trump officials have called the most favorable transatlantic trade agreement in U.S. history.
As part of the deal, the EU will purchase an estimated $750 billion in American energy exports — including liquified natural gas, oil, and nuclear materials — through 2028. Another $40 billion in U.S.-made artificial intelligence chips will also be procured to power European computing infrastructure. European firms are also expected to pour $600 billion into U.S. investment over the next three years.
“This investment reflects the European Union’s strong commitment to the transatlantic partnership and its recognition of the United States as the most secure and innovative destination for foreign investment,” the framework states.
Tariffs on European automobiles and autoparts, currently at 27.5%, will be reduced only after the EU fully follows through on eliminating its own tariffs on American-made industrial products.
Europe will also step up defense procurement from the U.S., agreeing to a substantial increase in purchases of American military equipment to strengthen NATO interoperability and deepen joint defense cooperation.
Von der Leyen praised the agreement for bringing “predictability for our companies & consumers,” as well as long-term stability and economic security for Europe’s workforce.
Commerce Secretary Howard Lutnick hailed the outcome as a “historic” win for President Trump’s America First trade agenda. “The America First Trade Agenda has secured the most important trading partner, creating a major win for American workers, U.S. industries, and our national security,” Lutnick posted on X. “Tariffs should be one of America’s favorite words.”