US and EU Set Tariff Rates for Autos and Industrial Goods

The United States and the European Union have set tariff rates for autos and industrial goods, solidifying their trade commitments in a joint statement. The Framework Agreement aims to reinvigorate economies' reindustrialization.

This Framework Agreement will put our trade and investment relationship — one of the largest in the world — on a solid footing and will reinvigorate our economies’ reindustrialization.

The agreement outlines a 15% U.S. tariff rate on most European goods, with specific auto tariffs tied to EU legislative actions. The EU agrees to eliminate tariffs on industrial goods and many agricultural products, while the U.S. will reduce tariffs accordingly.

Key points in the letter include $750 billion in energy purchases and $600 billion in EU investments by 2028, as well as addressing non-tariff barriers, digital trade, and environmental regulations.

In July, President Donald Trump and European Commission President Ursula von der Leyen met at Trump's Turnberry golf course in Scotland and announced the sweeping trade deal. The agreement imposes 15% tariffs on most European goods, preventing a threatened 30% rate if no deal had been reached by August 1.

The U.S. and the EU maintained generally low tariff levels before the agreement, with about $2 trillion in annual trade between the two economies.