US and EU confirm Trade Framework in Joint Statement

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Aug. 21, 2025
By: Marvin E. McPherson

The United States and European Union released a Joint Statement on the United States–European Union Framework Agreement related to trade. The framework agreement is slated to take effect on September 1, 2025, pending approval by the European Union. While positioned as a broad commitment to deepen investment and trade cooperation, the agreement also introduces significant tariff adjustments under both the Most-Favored-Nation (“MFN”) framework and Section 232 duties. The details remain subject to further clarification, and both governments have signaled that negotiations will continue.

While the Statement contains other information, some highlights include those listed below.

EU Commitments

• The European Union will eliminate tariffs on all US seafood and agricultural goods, including tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat.
• The EU has also committed to supporting increased bilateral investment across industrial and technology sectors, although specific investment initiatives remain to be defined.

US Commitments

• For imported EU-origin goods, the US will apply the higher of either the US MFN tariff rate or a flat 15% tariff.
• For certain categories including natural resources not available domestically (e.g., cork), all aircraft and aircraft parts, generic pharmaceuticals and related chemical precursors, only the MFN tariff will apply. US and EU officials have indicated that additional sectors may be added to this carve-out.
• For EU-origin pharmaceuticals, semiconductors, and lumber, Section 232 duties combined with MFN tariffs will be capped at no more than 15% in total.
• No Section 232 duties will apply to automobiles and automobile parts if the MFN rate is 15% or higher. Where the MFN rate is lower than 15%, a combined rate of 15% (MFN tariff plus Section 232 duties) will apply.
• With respect to steel, aluminum, and their derivative products, the EU and US intend to “consider the possibility to cooperate” on ring-fencing their respective domestic markets from overcapacity, while ensuring secure supply chains between each other, including through tariff-rate quota solutions.

The joint statement represents a significant step towards implementing a full trade agreement. EU leaders will vote to implement the framework agreement and more carveouts should be announced. If you have any questions regarding this framework or duty do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.