The European Union and the United States have issued a Joint Statement that redefines the foundation of their transatlantic trade and investment relationship. This milestone builds upon the political agreement reached between European Commission President Ursula von der Leyen and U.S. President Donald Trump on July 27, 2025.

Stability and Predictability at the Core

The Joint Statement aims to re-establish a stable and predictable environment for trade and investment, one that benefits all stakeholders — businesses, workers, and consumers. It marks the first step in a broader process designed to deepen trade ties, improve market access, and reduce trade-related uncertainties.

Clear Tariff Rules for a Fairer Playing Field

A key feature of the agreement is a new U.S. tariff regime for EU goods, capping most tariffs at 15%. This applies to 85% of EU exports — including strategic sectors such as automotive, pharmaceuticals, semiconductors, and lumber — and creates a clearer framework for exporters.

For cars and car parts specifically, this 15% ceiling will coincide with the EU initiating procedures to lower tariffs on U.S. products, ensuring reciprocity.

Special Treatment for Key Products

As of September 1, 2025, several product categories will benefit from a simplified regime where only standard Most Favoured Nation (MFN) tariffs apply. These include:

• Rare or unavailable natural resources (e.g., cork)
• Aircraft and aircraft parts
• Generic pharmaceuticals and their active ingredients
• Chemical precursors

Both sides have committed to working towards expanding this list — a top priority for the EU moving forward.

Addressing Global Challenges Together

Recognizing the need for joint solutions, the EU and U.S. also agreed to coordinate efforts to address steel and aluminum overcapacity and to develop secure and resilient supply chains. A new tariff-rate quota system will support EU exports of steel, aluminum, and their derivatives to the U.S. market.

Avoiding Trade Escalation, Fostering Long-Term Dialogue

While the EU maintains that high tariffs harm the global economy, this agreement prevents further escalation and opens a path toward long-term dialogue. It also supports deeper cooperation in areas of shared strategic interest.
The transatlantic trade relationship is already the most valuable economic partnership in the world — worth over €1.6 trillion annually. The deal safeguards this relationship and the millions of jobs it supports across the EU.

President von der Leyen’s Message

European Commission President Ursula von der Leyen stated:
“The European Union will always pursue the best outcomes for its citizens and businesses. Faced with a challenging situation, we have delivered for our Member States and industry, and restored clarity and coherence to transatlantic trade. This is not the end of the process — we continue to engage with the U.S. to agree on more tariff reductions, identify additional areas of cooperation, and unlock more economic growth potential.”

What Comes Next?

The European Commission will now move swiftly — with the support of Member States and the European Parliament — to implement the core elements of the agreement. The ultimate goal is to negotiate a comprehensive, fair, and mutually beneficial trade agreement with the U.S., aligned with the agreed framework.
In light of the political agreement, the EU has also suspended — effective from August 7 — its rebalancing measures introduced on July 24 in response to previous U.S. tariffs.

Why This Matters to You

If you’re a business owner, exporter, or part of a global supply chain, this agreement provides greater certainty and better market access. For consumers, it means improved trade conditions that can lead to more choice, stable prices, and stronger economic growth.
This agreement sets a new standard for responsible and forward-looking transatlantic cooperation — showing that even in times of global tension, diplomacy and shared interest can prevail.