U.S. deliveres fresh customs duties outline to the EU.
The EU and US are making significant strides in finalizing a joint statement, which is expected to be a legally binding text upon finalization [1]. This development comes after the recent tariff agreement between the two economic powerhouses. The Framework Agreement aims to promote reciprocal, fair, and balanced trade [4].
The agreement includes tariff adjustments and expanded market access commitments on both sides. The US will apply tariffs at the higher of the Most Favored Nation (MFN) rate or 15% on EU goods from September 1, 2025, with exemptions for specific products [4]. In contrast, the EU will eliminate tariffs on all US industrial goods and provide preferential access for various US agricultural and seafood products [4].
The agreement also includes commitments by the EU to buy $750 billion in US energy products over three years and invest $600 billion in the US economy by 2029. However, the US retains 50% tariffs on EU steel, aluminum, and copper, and both sides will establish tariff rate quotas at historic levels to reduce these tariffs [1][5].
Ongoing negotiations are underway to resolve remaining tariff issues, particularly aiming for exemptions from the US 25% Section 232 auto tariffs to reduce EU car export tariffs to 15%, which would increase the competitiveness of EU cars in the US market [2]. The scope of the Framework Agreement is also being expanded to cover additional sectors and products important for both economies and value chains [4].
Implementation steps are set to begin on September 1, 2025, including adjustments to tariff schedules and regulatory reforms on non-tariff barriers such as sanitary requirements for agricultural goods and digital trade barriers [4][5].
Meanwhile, a study published in the journal Nature Food has highlighted the urgent need for action to mitigate the effects of climate change on global food systems [6]. The study suggests that climate change could increase food prices by up to 90% by 2050 and reduce global crop yields by up to 25% by the same year [3].
The study, conducted by researchers at the University of California, Los Angeles (UCLA), found that adapting agriculture to climate change could help mitigate some of its negative impacts on food systems. However, the impacts could be particularly severe in regions that are already food insecure [3].
As the EU and US work towards finalizing their agreement, both parties have received each other's suggestions for the final conclusion of the joint statement following the tariff agreement. The EU will examine the US suggestions and engage both technically and politically with their American counterparts. High-level expertise will be invested to convey the EU's final opinions to the US [7].
The advancements in the EU-US trade agreement and the warnings from the climate change study underscore the importance of balanced economic growth and environmental sustainability. As negotiations continue, both parties will need to consider the potential impacts of their decisions on global food systems and the environment.
- The ongoing negotiations between the EU and US regarding their trade agreement involve the consideration of both policy-and-legislation and politics, as the EU is examining the US suggestions for the final conclusion of the joint statement.
- The general-news landscape is underscoring the significance of balanced economic growth and environmental sustainability, as advancements in the EU-US trade agreement must consider the potential impacts of their decisions on global food systems and the environment.
