🚨️ What we know about the trade agreement between the EU and the United States

Brussels (Belgium), July 28, 2025 (AFP) - Under fire from critics, Brussels on Monday presented Donald Trump's trade agreement with the United States as the “best” possible compromise in a “very difficult” context.

It has yet to be specified in a joint statement by the two partners expected by 1 August.

Here's what we know at this point:

What does the agreement provide?

Negotiated bitterly for months, it provides for the principle of a 15% surtax on all European imports to the United States, as in the USA-Japan agreement announced last week. This level absorbs all existing taxes, and avoids the specter of 30%, the threat posed by Donald Trump in recent days. Before Trump returned to the White House, European goods were taxed at an average of 4.8%.

The rate of 15% concerns, for example, the automotive sector, which is crucial for Germany, the largest economy in the European block. In a sector employing around 13 million people in Europe, manufacturers have been paying customs duties of 27.5% since April - compared to 2.5% before the new Trump administration. The European car manufacturer lobby welcomed a welcome “de-escalation” on Monday.

Purchases of American hydrocarbons (natural gas, oil and nuclear fuels) are also planned for 750 billion dollars over three years. For the EU, this will make it possible to replace Russian gas imports and thus avoid financing the war launched by the Kremlin in Ukraine.

The agreement also includes new European investments in the United States for 600 billion USD, an amount corresponding to the “intentions” of the European private sector, it is explained in Brussels.

Donald Trump also referred to “hundreds of billions of dollars” in arms purchases by Europeans. On Monday, a Commission official assured that this area was not covered by the agreement, which explains why “we did not give figures on this”.

Are there any exemptions?

While customs duties of 15% apply to most exports, Brussels and Washington agreed that each of the two partners would be exempt from taxes for goods considered essential. The exact list is yet to be confirmed.

The EU said it was ready to expand the list of what could be imported from the United States into Europe without any tax, by choosing among products that are currently weakly taxed.

This could concern nuts, lobster, cheese, some dairy products, or even pet food, a Commission official said on Monday.

Brussels should exempt machine tools, certain chemical or fertilizer-related products from customs duties, an American supply that would be an alternative option to Russian sources

On the industry side, the EU has said it is ready to reduce taxes on American cars if Washington wishes.

In exchange, a “zero customs tariff” would benefit European aeronautics and certain medical devices exported across the Atlantic.

As for European wine and spirits exports, nothing has yet been stopped. Discussions are ongoing.

Floating for pharmacy and steel

A hesitation persists for some areas

Several sectors - semiconductors, pharmaceutical products - are currently targeted by American trade investigations that could lead Trump to impose massive taxes.

As part of the agreement reached on Sunday, the EU says that pharmaceutical products will not be taxed at more than 15%, no matter what, and expected less. Brussels would like to defend a strategic industry for a country like Ireland.

For its part, the White House says that they will be taxed at 15%.

Regarding steel, Europeans are currently subject to customs duties of 50% on their exports to the United States. Washington considers that these taxes remain “unchanged” at this stage, but intends to “discuss with the EU the security of supply chains”.

According to the EU, Donald Trump is nevertheless ready for a compromise in the form of a quota system. The 50% tax would only apply beyond a certain volume of exports.

What are the next steps?

The agreement still needs to be approved by EU member countries. The process is still unclear, as everything will depend on what form the final agreement takes.

A few days before the meeting in Turnberry, on the west coast of Scotland, Europeans had put the finishing touches on possible reprisals for a sledgehammer by Donald Trump, i.e. a list of American goods that would be taxed for a total of 93 billion euros, starting on 7 August and in several stages.

Brussels will suspend the measures once Trump issues the executive orders confirming the terms of the deal.

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