U.S. and EU spell out tariffs for autos, pharmaceuticals, and more

The U.S. and European Union on Thursday revealed fresh details about their trade framework, including on hotly contested and anticipated pharma and semiconductor tariffs.

After weeks of heated negotiation, Brussels and Washington finally arrived at a trade agreement late last month, setting out 15% blanket tariffs on EU exports to the U.S. Under the deal, the EU also committed to purchase $750 billion worth of U.S. energy and invest at least an additional $600 billion in the U.S.

Many political and business leaders in Europe at the time expressed concerns about the deal being unbalanced. Several questions remained unanswered including on what tariff rate would apply to some goods U.S. President Donald Trump has hit with sectoral duties.

Thursday’s announcement at last shed more details at a time when many other trading partners are still waiting, and negotiating, for similar clarity on their respective trade deals with the U.S.

Speaking to journalists on Thursday after the announcement, EU Trade Commissioner Maros Sefcovic said that “this is the most favorable trade deal the U.S. has extended to any partner.”

“But this is not the end. This is the beginning. This framework is the first step, one that can grow over time to cover more sectors, improve market access, and strengthen our economic ties even further,” he added.

Several so-called Section 232 tariffs have been capped at the wider 15% tariff rate, including those on lumber, semiconductors and pharmaceuticals, according to a senior U.S. administration official. This is sharply below the rates Trump has sometimes threatened, as well as a 100% levy on semiconductors.

Meanwhile, the statement noted that the EU intends to “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.” This was already broadly covered in the initial framework.

The statement also included insights into the EU’s energy purchasing and investment pledges, which previously raised questions about their feasibility and about potential repercussions if the commitments do not materialize.

The latest announcement reiterated figures for planned spending from the EU, including on AI chips, energy, and broader investments in the U.S., but described them as intended and expected, rather than as guaranteed commitments, a senior administration official pointed out.

Thursday’s statement also noted plans for the EU to “substantially” increase its procurement of U.S. military and defense equipment, even as Europe has committed to growing its own defense capabilities.

Notably, the latest agreement does not introduce changes in terms of the EU’s digital services act, which includes regulations for big tech companies and has long been a point of contention in trade talks for Trump.

Sefcovic on Thursday noted that the digital sector had been kept out of trade talks.

He also addressed questions regarding the wine and spirits sector, which is not covered by the deal. The EU’s trade commissioner suggested that, while it would not be easy to come to an agreement on this issue with Washington, “these doors are not closed forever.”