The framework agreement covers a wide range of areas. The European Union has committed to eliminating tariffs on US industrial goods and granting preferential market access for a broad array of US agricultural and fisheries products, including lobster and lobster-derived products. In return, the United States will ensure that the combined tariff rate applied to European goods does not exceed 15%. For selected commodities – particularly aircraft and parts, generic pharmaceuticals, and chemical precursors – the United States will apply only Most Favoured Nation (MFN) rates as of September 2025.

The joint statement does not explicitly mention the retention of previously announced US tariffs on imports of steel and aluminium from the EU. However, based on earlier statements from both sides, it is assumed that these tariffs remain in place.

Beyond tariff adjustments, the agreement includes a commitment to negotiate rules of origin to ensure that its benefits accrue primarily to both parties. It also focuses on reducing non-tariff barriers, such as mutual recognition of technical standards, simplification of requirements for trade in agricultural products, and enhanced cooperation in the field of cybersecurity.

A significant dimension is the EU’s commitment to increase investment in strategic sectors in the United States, with European companies expected to play a key role in energy, technology, and defence. The EU has also committed to purchasing US energy products and semiconductor chips. Closer cooperation is also evident in the defence sector, where the EU plans to expand procurement of US equipment to strengthen interoperability within NATO and reinforce transatlantic ties.

Regulatory aspects are equally important. The European Union has pledged to address US concerns regarding the impact of environmental and sustainability policies – specifically the Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR), and the Corporate Sustainability Due Diligence and Reporting Directives (CSDDD and CSRD). The objective is to ensure these measures do not create unjustified obstacles to transatlantic trade and that their implementation takes into account the needs of small and medium-sized enterprises.

Digital trade forms another pillar of the agreement. The EU and the US have agreed not to impose tariffs on electronic transmissions and reaffirmed their commitment to continue the WTO moratorium on such measures. The EU has further pledged to consult the US and US businesses on trade digitalisation initiatives and the upcoming reform of EU customs legislation.

For European businesses, the agreement does not preserve the status quo in tariffs on exports to the United States – in many cases, US rates had previously been lower. Its main benefit lies in predictability and reduced risk of sudden tariff hikes, as the US guarantees a ceiling of 15% on combined tariffs. In the automotive sector, the agreement clearly defines tariff rules, reducing the significant legal uncertainty that existed in the past. Alongside the reduction of non-tariff barriers and harmonisation of standards, this may lower transaction and compliance costs and enhance trade stability.

Thus, the significance of the agreement lies less in the immediate change of tariff levels and more in strengthening legal certainty, stabilising the trade environment, and removing barriers that had previously hampered cooperation. If both parties are able to deliver on their commitments, the transatlantic space may evolve into an even more integrated and predictable market, attractive for European exporters.

It should be noted, however, that before the framework agreement is applied in practice, it must first be formally documented and implemented under the internal procedures of both parties. This step is expected to take place without undue delay. Given the fast-evolving nature of the situation, it will be essential to monitor how the agreement is translated into concrete legislation and business practice. The contents of this summary reflect the state of play as of 21 August 2025. Further updates will follow as new information becomes available.

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