COOPERATION AGREEMENT BETWEEN U.S. AND EU FOR RECIPROCAL, FAIR, AND BALANCED TRADE
The White House announced a trade arrangement with the European Union (EU). It aims to update transatlantic economic ties, expand market access, and establish reciprocal tariffs and investments. The agreement introduces a 15% reciprocal tariff on qualifying EU-origin goods, establishes EU purchases of U.S. energy and technology exports, along with a multi-year investment in U.S.-based industrial sectors.
“Today’s announcement opens up historic market access to the second largest economy in the world, reestablishing the strong positive long-term relationship between the United States and its key ally the European Union.”
White House | Fact Sheet: The United States and European Union Reach Massive Trade Deal
U.S.-EU TRADE DEAL: RECIPROCAL TARIFFS AND OTHER PROVISIONS
According to the official fact sheet published by the White House on July 28, 2025, the U.S. will apply a 15% reciprocal tariff on most inbound EU goods while sector-specific tariffs on steel, aluminum, and copper remain unchanged at 50% pending further discussions regarding critical supply chain alignment.
EU goods with a 15% reciprocal tariff include:
- Automobiles and auto parts
- Pharmaceuticals
- Semiconductors
The tariff terms are structured to encourage reshoring, local sourcing, and contributions to the U.S. manufacturing base.
U.S. GAINS EXPANDED EXPORT ACCESS TO EU MARKETS
In addition to tariff elimination, the EU will provide new quotas and regulatory flexibility across various industries, enabling U.S. exporters, including small and medium-sized enterprises, to compete more effectively in the European market.
The agreement identifies the following commitments:
- Elimination of specific regulatory barriers affecting U.S. industrial exporters
- Streamlined certification processes for U.S. pork and dairy exports
- Removal of non-tariff barriers affecting food and agriculture trade
- Affirmation of zero customs duties on electronic transmissions
Both the U.S. and EU agreed to maintain strong rules of origin to prevent third-country benefits and reinforce bilateral value capture.
ENERGY, INVESTMENT, AND COMMERCIAL COOPERATION
The EU agreed to purchase $750 billion in U.S. energy exports through 2028, supporting continued U.S. production in LNG, petroleum, and related sectors. Additionally, the EU has committed to investing $600 billion in the United States during the current administration’s term, reinforcing the U.S. status as a global hub for advanced manufacturing and energy production.
The trade agreement also addresses commercial deals in semiconductors and energy infrastructure that are expected to further expand U.S. exports to the European market.
“If I were to sum up this EU-US agreement in one sentence, I would say it brings renewed stability and opens the door to strategic collaboration. This is the result of months of genuine and relentless efforts – unmatched in their intensity and matched only by the unparalleled importance of our transatlantic trade.”
Maroš Šefčovič | EU Commissioner for Trade and Economic Security
ECONOMIC SECURITY AND MILITARY PROCUREMENT TERMS
To enhance shared economic security, the United States and European Union have committed to coordinated action in the following areas:
- Joint inbound and outbound investment screening
- Export control alignment
- Duty evasion prevention
- Review of non-market economic policies impacting trade
Additionally, the EU has agreed to procure significant volumes of U.S.-manufactured military equipment, reinforcing transatlantic defense industrial cooperation.
IMPLEMENTATION GUIDANCE AND NEXT STEPS
Formal implementation guidance and documentation are expected in the coming weeks. U.S. importers and exporters are encouraged to monitor agency-level updates related to certificate of origin requirements, tariff administration, and regulatory compliance as full implementation proceeds.
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