Brussels: A significant trade agreement has been reached between the European Union (EU) and the United States, establishing a stable foundation for economic interactions between the two economic giants. This deal underscores the transatlantic partnership, which accounts for a combined market of 800 million people and nearly 44% of global GDP, facilitating annual trade valued at USD 1.7 trillion.

According to European Union, the agreement introduces a 15% tariff rate for most EU exports, covering sectors like automobiles, semiconductors, and pharmaceuticals. This tariff rate acts as a ceiling, eliminating any additional charges, thereby providing clarity for businesses and citizens. Additionally, a zero-for-zero tariff policy has been agreed upon for strategic products, such as aircraft components, certain chemicals, semiconductor equipment, and critical raw materials.

The agreement aims to provide predictability for businesses, ensuring immediate tariff relief that could positively impact company finances. It also secures access to the US market for European exports while enhancing access for American products in Europe. This framework is expected to reduce tariffs further, address non-tariff barriers, and foster cooperation on economic security, demonstrating tangible benefits of the EU-US partnership.

The EU is simultaneously establishing a foreign economic policy and enhancing its competitiveness and innovation within its Single Market, which serves as a critical asset in uncertain times. Moreover, the EU is expanding its trade partnerships globally, having concluded negotiations with Mercosur, Mexico, and Indonesia recently.

President von der Leyen expressed gratitude to President Trump for his dedication and leadership in achieving the agreement. She also acknowledged Commissioner Maroš Šefcovic and his team for their efforts and praised EU Member States for their trust and unity, which are essential for the EU’s strength both domestically and internationally.