The U.S. and European Union announced this morning that they have agreed to a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade.

“The United States and the European Union intend this Framework Agreement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship,” the U.S. and EU said in the joint statement.

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Some key terms from the Framework Agreement include: 

1.  The EU intends to eliminate tariffs on all U.S. industrial goods and to provide preferential market access for a wide range of U.S. seafood and agricultural goods, including tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat. The EU will immediately take the necessary steps to extend the Joint Statement of the United States and the European Union on a Tariff Agreement announced on Aug. 21, 2020, with respect to lobster (that expired July 31, 2025), coupled with an expanded product scope to include processed lobster.

2.  The U.S. commits to apply the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15%, comprised of the MFN tariff and a reciprocal tariff, on originating goods of the EU. Additionally, effective Sept. 1, the U.S. commits to apply only the MFN tariff to the following products of the EU: unavailable natural resources (including cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors. The U.S. and the EU agree to consider other sectors and products that are important for their economies and value chains for inclusion in the list of products for which only the MFN tariffs would apply.

3.  The U.S. intends to promptly ensure that the tariff rate, comprised of the MFN tariff and the tariff imposed pursuant to Section 232 of the 1962 Trade Expansion Act, applied to originating goods of the EU subject to Section 232 actions on pharmaceuticals, semiconductors, and lumber does not exceed 15%. When the EU formally introduces the necessary legislative proposal to enact the tariff reductions set forth in Section 1 of this Framework Agreement, the U.S. will reduce tariffs on automobiles and automobile parts originating from the EU subject to Section 232 tariffs as follows: No Section 232 automobile or automobile parts tariffs will apply to covered EU goods with an MFN tariff of 15% or higher; and for covered goods with an MFN rate lower than 15%, a combined rate of 15%, comprised of the MFN tariff and Section 232 automobile tariffs, will be applied. These tariff reductions are expected to be effective from the first day of the same month in which the European Union’s legislative proposal is introduced. With respect to steel, aluminum, and their derivative products, the EU and the U.S. intend to consider the possibility to cooperate on ring-fencing their respective domestic markets from overcapacity, while ensuring secure supply chains between each other, including through tariff-rate quota solutions.

4.  The U.S. and EU agree to strengthen economic security alignment to enhance supply chain resilience and innovation by taking complementary actions to address non-market policies of third parties as well as cooperating on inbound and outbound investment reviews and export controls, as well as duty evasion. This includes addressing non-market practices, unfair competition, and lack of reciprocity in public procurement with respect to third countries. The U.S. and EU will cooperate on further implementation measures.

A & A Customs Brokers will continue to monitor this announcement and once official Guidance has been published by the CBP, we will udpate this page for our readers.