Key Metrics
12.34
Heat Index-
Impact LevelMedium
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Scope LevelGlobal
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Last Update2025-08-21
Key Impacts
Positive Impacts (9)
Negative Impacts (1)
Event Overview
This development represents a negotiation-driven approach to addressing transatlantic trade tensions and market access. The agreement encompasses efforts to manage regulatory differences across various sectors—including agriculture, automobiles, technology, and environmental measures—while establishing mechanisms for tariff limitation and cooperation in emerging economic areas. The move highlights ongoing balancing acts between protectionist policies, economic integration, and sector-specific regulatory alignment.
Collect Records
United States and European Union Agree on Trade Framework with Tariff Caps
The White House announced that the United States and the European Union have agreed on a framework for a trade agreement. According to the White House statement, the framework contains 19 key points covering areas such as agricultural products, automobiles, industrial goods including aircraft, semiconductor chips, energy, EU investments in the US, loosening of environmental regulations, cybersecurity agreements, and digital trade barriers. The statement specifies that the US will apply to EU-origin goods the higher of the following two tariff rates: the US Most Favored Nation (MFN) tariff rate, or a rate composed of the MFN tariff and a reciprocal tariff totaling no more than 15%. Starting from September 1, 2025, the US will apply only MFN tariffs to EU products in the categories of non-renewable natural resources (including softwood), all aircraft and aircraft parts, generic medicines and their ingredients, and chemical precursors. The US and EU agreed to consider adding other sectors and products important to their economies and value chains to the list subject only to MFN tariffs. Details also specify that most EU goods will be subject to US tariffs not exceeding 15%, covering automobiles, medicines, semiconductor chips, and wood products.