With tariffs capped and $40 billion in AI chip purchases planned, the new US-EU trade pact puts semiconductors at the heart of transatlantic cooperation.
The United States and the European Union have finalised a framework trade agreement that sets new rules for key industrial sectors, including semiconductors. The deal was confirmed in a joint statement released by the White House on Thursday.
Under the agreement, Washington will impose tariffs of either 15% or the most-favoured-nation (MFN) duty rate on EU imports, whichever is higher. Crucially, a cap of 15% has been imposed on imports of pharmaceuticals, semiconductors, and lumber.
These categories are currently under Section 232 investigation, where tariffs as high as 50% have previously been applied.
Moreover, the statement said the US would apply only MFN duty rates on aircraft parts, chemical precursors, generic pharmaceuticals, and specific natural resources from September 1. Other sectors may be added later.
For its part, the EU has pledged to cut tariffs on US industrial goods and expand market access for American agricultural exports, including nuts, fruits, pork, bison and dairy products.
Once legislation is passed in Brussels, the US intends to levy a 15% tariff on EU cars and auto components unless higher MFN rates apply. Both sides also committed to working together on automotive standards.
Beyond tariffs, the agreement highlights strategic cooperation in technology. The EU is expected to purchase $40 billion worth of US artificial intelligence chips by 2028 and source $750 billion in energy products. European firms will also invest $600 billion in the US over the next three years.
The two trading partners signalled possible collaboration on protecting domestic steel and aluminium markets against global overcapacity. The EU also agreed to reduce regulatory barriers to US companies.
European Commission President Ursula von der Leyen described the pact as a step towards stability and predictability in transatlantic trade, strengthening the world’s largest economic partnership.
