07/28/2025
The United States and European Union announced a trade deal this weekend. The framework sees the US applying a 15% tariff on most EU goods, including cars and pharmaceuticals, and a mutual reduction to 0% tariffs on others, including aircraft and semiconductor equipment. Steel and aluminum will remain tariffed at 50%. Tariffs on some goods—including wine—are still under negotiation.
The announcement ends months of uncertainty for two of the world’s largest economies, responsible for nearly one-third of global trade. As part of the deal, the EU has committed to spending an additional $600B in the US, including on military equipment, and $750B on liquid gas and nuclear energy. The EU intends to phase out Russian gas imports by 2028.