United States and European Union Issue Joint Statement, Reach Consensus on Trade Agreement Framework

On August 21 local time, the White House issued a joint statement with the European Union stating that the United States and the EU have reached an agreement on the framework of a trade deal. The EU side subsequently also issued a joint statement.

According to the statement released by the White House, the framework of the trade agreement between the United States and the European Union includes 19 key points, covering various areas such as agricultural products, automobiles, industrial goods including aircraft, semiconductor chips, energy, EU investment in the US, easing of environmental protection regulation restrictions, cybersecurity agreements, and digital trade barriers.

The European Union will eliminate all tariffs on American industrial goods and provide preferential market access for U.S. agricultural products.

The White House statement clearly indicates that the European Union will eliminate tariffs on all U.S. industrial products and provide preferential market access for U.S. seafood and agricultural products, including nuts, dairy products, fresh and processed fruits and vegetables, processed foods, seeds, soybean oil, and meat products. In addition, the EU will take immediate measures to extend the provisions regarding lobster announced in the U.S.-EU Tariff Agreement Joint Statement of August 21, 2020 (originally set to expire on July 31, 2025) and expand the product scope to include processed lobster.

The U.S. imposes tariffs on most EU goods with rates up to 15%, covering automobiles, pharmaceuticals, semiconductor chips, and timber.

In addition, the statement clarifies that the United States commits to applying the higher of the two following tariff rates to goods originating from the European Union: the U.S. Most Favored Nation (MFN) tariff rate or a 15% tariff rate consisting of MFN tariffs and reciprocal tariffs. Furthermore, starting from September 1, 2025, the United States commits to applying only the MFN tariffs to the following EU products: non-renewable natural resources (including softwood), all aircraft and aircraft parts, generic drugs and their raw materials and chemical precursors. The United States and the European Union agree to consider other sectors and products important to their respective economies and value chains to be included in the list of products subject only to MFN tariffs.

In addition, the regulations stipulate that the U.S. will impose tariffs not exceeding 15% on most EU goods, covering automobiles, pharmaceuticals, semiconductor chips, and timber.

The EU purchases U.S. energy products, artificial intelligence chips, and defense equipment.

The statement also clarified that the EU will purchase energy products from the United States, including liquefied natural gas, oil, and nuclear products, with the expected purchase amount reaching $750 billion by 2028. Additionally, the EU commits to purchasing at least $40 billion worth of U.S. artificial intelligence chips for the construction of European data centers. The statement anticipates that by 2028, European companies will make an additional $600 billion investment in U.S. strategic sectors. Furthermore, the EU plans to significantly increase procurement of military and defense equipment from the United States.

EU: Will continue to negotiate further tariff reductions with the United States.

According to a reporter from the China Media Group, it has been learned from the EU side that the joint statement was reached after intensive negotiations between Maroš Šefčovič, the European Commission's commissioner responsible for trade and economic security, U.S. Secretary of Commerce Gina Raimondo, and U.S. Trade Representative Katherine Tai.

European Commission President Ursula von der Leyen stated that the EU will continue to work with the United States to agree on further tariff reductions and identify more areas of cooperation.

The European Commission, with the support of EU member states and the European Parliament, will proceed to implement the main elements of the agreement in accordance with the relevant internal procedures. The EU will also negotiate a fair, balanced, and mutually beneficial trade agreement with the United States based on the agreed framework and applicable procedures.