Trade accord between the European Union and the United States brings security and prospects for expansion to both parties
In a significant political agreement reached on July 27, 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump signed a deal aimed at bolstering economic ties between the EU and the US. The accord, which is not legally binding yet, promises to provide stability, planning security, and economic prospects for citizens and businesses on both sides of the Atlantic.
The agreement marks a significant step towards deepening economic security cooperation between the two powerhouses. It aims to make supply chains more resilient and combat unfair trade practices. One of the key components of the deal is the introduction of a uniform tariff rate of 15 percent for a large majority of EU exports to the United States. Strategically important sectors such as the semiconductor industry are expected to benefit from this limitation.
Moreover, the EU plans to purchase approximately 700 billion euros worth of liquefied natural gas, oil, and nuclear energy products from the US over the next three years. This move is expected to further strengthen the economic ties between the two regions. The agreement also includes a mutual zero-tariff rate for a range of strategic products, including aircraft and aircraft parts, certain chemicals, generics, semiconductor equipment, selected agricultural products, and natural resources and critical raw materials.
In addition to these measures, the EU and the US have agreed to reduce non-tariff trade barriers. This includes closer cooperation on technical standards in the automotive industry and on health and plant protection measures. Mutual recognition of conformity assessments in further industrial sectors will also be facilitated.
The agreement is expected to bring annual savings of around 5 billion euros in tariffs for consumers and importers in the EU. It also paves the way for European companies to invest at least 550 billion euros in the US by 2029, particularly in strategic growth areas. These investments could further strengthen existing investments of over 2.4 trillion euros and provide new impetus for the transatlantic economy.
In 2024, transatlantic trade in goods and services reached a value of over 1.68 trillion euros, with the US being the EU's largest export market and the second-largest supplier of goods. The EU had a total trade surplus of around 50 billion euros in 2024, with a surplus in goods trade outweighing the deficit in services.
The agreement pays particular attention to the protection of the European steel, aluminum, and copper industry by introducing fair tariff quotas. The available search results do not provide specific information about which industry representatives plan to invest at least 550 billion euros in various sectors in the United States in 2029, particularly in strategically vigilant areas, according to the European Commission.
The purchase of AI chips from the US valued at 40 billion euros will secure and enhance the EU's technological advantage. The deal further strengthens the economic ties between the EU and the US, aiming to provide a solid foundation for future cooperation and growth.
In conclusion, the EU-US agreement is a significant step towards strengthening the transatlantic economy and fostering closer cooperation between the two regions. The deal promises to bring economic relief, boost trade, and secure strategic investments, providing a brighter future for citizens and businesses on both sides of the Atlantic.
