Agreement on Reciprocal, Fair, and Balanced Trade
Agreement on Reciprocal, Fair, and Balanced Trade
The Agreement on Reciprocal, Fair, and Balanced Trade, informally called the EU–US trade agreement, is a proposed trade agreement between the European Union (EU) and the United States. A framework agreement was announced in a joint statement on 21 August 2025. The framework agreement provides for 15% tariffs on all European exports and 0% tariffs on certain US exports. It was proposed to replace the previous Transatlantic Trade and Investment Partnership (TTIP) efforts.
Agreement on Reciprocal, Fair, and Balanced Trade
As a result of the Greenland crisis and Trump's threats of a trade war against several EU and NATO members in retaliation for their participation in the Operation Arctic Endurance NATO exercise in Greenland, the approval of the agreement was temporarily suspended. On 26 March 2026, EU lawmakers adopted legislation to implement the trade agreement.
Tariffs
The US is imposing a 15% tariff on almost all EU goods, MFN tariffs for unavailable natural resources, aircraft, and generic pharmaceuticals, capping combined MFN + Section 232 tariffs at 15% for pharmaceuticals, semiconductors, and lumber, while leaving metals at 50% above quotas.
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