US-EU Reach Agreement on 15% Tariffs with Exceptions

The United States and the European Union have reached a trade agreement to impose 15% tariffs on European products, excluding steel and aluminum. The agreement was announced by US President Donald Trump and European Commission President Ursula von der Leyen.

Von der Leyen stated that the EU will make investments of $600 billion and purchase $750 billion worth of energy and military equipment from the US.

The new tariffs will apply to automobiles, semiconductors, and pharmaceutical products. Zero tariffs will apply to aircraft, components, selected agricultural and chemical products. The EU will increase LNG imports from the US.

The agreement does not yet include a regulation for alcoholic beverages, and ratification by the EU member states is pending.

US Secretary of Commerce Howard Lutnick announced that final decisions on pharmaceuticals and semiconductors will be made within two weeks.

France received the agreement with reservations, while markets reacted positively, with the euro strengthening 0.27% against the dollar.