TURNBERRY, SCOTLAND – The United States and European Union have reached a framework trade agreement that avoids a major tariff escalation and opens new opportunities for U.S. agricultural exports. Under the deal announced Sunday, most EU goods entering the U.S. will now face a 15% baseline tariff—avoiding the 30% level previously proposed by the White House. In return, both sides agreed to eliminate tariffs entirely on key strategic products.
Among those zero-tariff items are selected agricultural products, giving U.S. exporters new access to the European market for beef, pork, grains, and processed foods. According to Reuters, additional zero-tariff categories include aircraft parts, critical minerals, generic pharmaceuticals, and semiconductor equipment.
Although steep tariffs on European steel and aluminum remain in place for now, those are expected to be addressed in a follow-up quota-based system. The EU also committed to purchasing $750 billion in U.S. energy over three years, along with $600 billion in industrial investment.
The agreement mirrors a similar 2024 deal between the U.S. and Japan and must still be ratified by the European Parliament and individual EU nations before taking effect.