EU and US seal trade pact cutting tariffs and boosting energy and tech purchases

The European Union and the United States have finalized a comprehensive trade agreement that eliminates EU duties on most US industrial goods and caps US tariffs on EU imports at 15%. The deal, formally adopted by the EU Council in June 2026, also secures increased EU procurement of US energy supplies—including liquefied natural gas and nuclear fuel—alongside commitments for US investment in key sectors through 2028. Technology provisions call for expanded EU purchases of US‑made artificial‑intelligence chips and greater acquisition of US military equipment. The arrangement runs through 2029 and contains a clause allowing the EU to reinstate tariffs if import surges threaten local industries. Politically, the pact was signed at former President Donald Trump’s Turnberry golf course in Scotland in July 2025 and required a year‑long series of EU legislative steps, including trilogue negotiations, European Parliament approval in Strasbourg, and pending ministerial sign‑offs.

While the agreement removes many trade barriers, tensions persist over digital‑taxation rules, and the EU’s internal deliberations have been criticized for their speed. Nonetheless, the pact aims to deepen transatlantic economic ties and provide a framework for future cooperation.