EU maintains its counter-tariffs against the U.S., according to its statement.
EU-US Trade Agreement: A Comprehensive Framework and Suspended Retaliatory Measures
In a significant development for transatlantic relations, the EU and US reached an agreement on July 27, 2025, establishing a comprehensive trade and economic framework. This landmark deal, announced jointly by European Commission President Ursula von der Leyen and US President Donald Trump, covers tariffs, energy resources, military equipment purchases, and more.
Tariffs and Trade
The United States will impose a 15% tariff on all European goods as part of this new framework. This move is a response to earlier tariffs imposed by the US on European imports, such as steel and aluminum. The deal, however, provides a framework to further reduce tariffs on more products and address non-tariff barriers, aiming to improve trade conditions on both sides.
Energy Cooperation and Investments
The European Union has committed to purchasing $750 billion in US energy supplies, reinforcing transatlantic energy cooperation and supply diversification. Additionally, the EU will make new investments totaling $600 billion in the US economy.
Military Ties
The agreement includes significant EU purchases of US military equipment, strengthening military-industrial ties.
Non-Tariff Barriers and Economic Security
The deal addresses non-tariff barriers, such as streamlining sanitary certification for US agricultural products like pork and dairy, and aims to prevent third-country "free riding" through strong rules of origin. The agreement also promotes economic security alignment to boost supply chain resilience, innovation, and coordinated actions on investment reviews, export controls, and duty evasion.
Retaliatory Measures and Suspension
The EU had initially planned retaliatory measures, worth a total of €93 billion (€21 billion + €72 billion), in response to the US tariffs. These measures, which were set to take effect on August 7, have been suspended. The EU reserves the right to reinstate these measures if US tariffs exceed 15%. The suspension does not permanently cancel these measures.
Olof Jill, an EU representative, has stated that the EU cannot dictate to companies from the EU to purchase or invest a specific amount in the US. However, the EU has made additional commitments beyond the previously suspended retaliatory measures, including investments in energy resources, nuclear power equipment, and the US economy, totalling $1.35 trillion ($750 billion + $600 billion).
The US has agreed to reduce tariffs from 30% to 15%. The EU has agreed to refrain from retaliatory actions in response to the reduced tariffs. The US has not yet permanently cancelled the tariffs, but they have been reduced. The delay in the implementation of the retaliatory measures, which were initially set for August 7, has also been announced.
This agreement marks a significant advance in EU-US trade relations by imposing new tariffs from the US side while expanding US exports to Europe, securing crucial energy purchases, and deepening military cooperation. The deal is expected to boost economic growth and strengthen transatlantic ties.
- In light of the suspension of retaliatory measures worth €93 billion, it can be inferred that the general news now covers the EU's decision to hold off on these actions, as agreed upon based on the new USA-EU Trade Agreement and the reduced tariffs imposed by the US.
- The policy-and-legislation aspect of this news involves the new tariff policies established as part of the USA-EU Trade Agreement, with the US imposing a 15% tariff on all European goods while agreeing to immediately reduce tariffs from 30% to 15%.
