EU and US seal trade deal: 15 per cent cap on import tariffs for pharmaceuticals
The European Union and the United States issued a joint statement on Thursday confirming details of their new trade agreement. Among other measures, Washington will introduce a maximum tariff of 15 per cent on imports of cars, pharmaceuticals, semiconductors and a wide range of other goods.
The statement formalises the agreement in principle announced at the end of July in Scotland by US president Donald Trump and European commission president Ursula von der Leyen. While the general import tariff will be capped at 15 per cent, several products will benefit from lower rates. These include aircraft and aircraft parts, generic medicines and their ingredients, as well as chemical precursors.
The EU hopes to broaden this preferential regime to additional products in future negotiations. "This is not the end, but the beginning," said European trade commissioner Maros Sefcovic, describing the deal as "a first step that will bring predictability and stability to our relationship."
Key takeaways
Both sides agreed to deepen cooperation on energy, with the EU planning large-scale purchases of US liquefied natural gas, oil, nuclear products and at least 40 billion dollars worth of advanced AI chips. European companies are also expected to invest an additional 600 billion dollars in strategic sectors in the United States by 2028.
Defence procurement forms another pillar of the deal, with EU governments set to increase purchases of American military equipment.
The agreement also includes measures to align standards, reduce non-tariff barriers, and strengthen supply chains. This covers mutual recognition in sectors such as automobiles, telecommunications and cybersecurity, as well as commitments on digital trade, intellectual property, labour rights and environmental regulation.
European commission president Ursula von der Leyen shakes hands with US president Donald Trump after agreeing on a trade deal between the two economies following their meeting, in Turnberry south west Scotland on 27 July, 2025 © PHOTO BRENDAN SMIALOWSKI / AFP
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