Trade Pact Details Emerge: US and EU Outline Tariff Reductions and Investment Plans

White House trade advisor Peter Navarro presented the specifics of the US-EU trade agreement, which Washington sees as a pivotal step toward ‘equitable and fair trade’ with its allies. According to Navarro, the EU has agreed to eliminate all tariffs, while the US will maintain its global tariffs at 15% to combat the trade deficit. This includes a 15% tariff on autos, reduced from 25%, but significantly up from pre-Trump era rates. Tariffs on steel and aluminum will remain in place without exceptions. The agreement includes $750 billion in LNG purchases and $600 billion in investments in strategic sectors within the US. It also aims to boost European participation in the NATO effort. Navarro praised the agreement as a ‘magnificent’ accomplishment of Trump’s trade policy, encouraging greater cooperation between the US and Europe. Previously, the Trump administration announced that the EU would remove all tariffs on US industrial goods and expand access for American seafood and agricultural exports. In return, most EU products will be subject to a 15% tariff. The 27-nation bloc has pledged $600 billion in corporate investments in the US and will purchase at least $750 billion worth of American energy over the coming years. The agreement aims to strengthen trade and investment ties and revitalize economies, reflecting a shared determination to address trade imbalances. The EU has committed to buying at least $40 billion of American artificial intelligence chips. The 15% tariff on European pharmaceuticals will be capped. Additional European goods will also face the 15% tariff starting September 1. This agreement is considered the most favorable trade deal the US has extended to any partner and is the first step toward deepening US-EU economic ties.