‘Tariffs should be one of America’s favorite words’: US Commerce Secy on $20T EU market opening

US Commerce Secretary Howard Lutnick on Thursday announced that Washington and Brussels had finalised a framework agreement on reciprocal trade, calling it a major step for American industries and workers. “It’s official. We have finalized our historic U.S.–EU Framework Agreement on Reciprocal, Fair, and Balanced trade. The EU has agreed to open its $20 Trillion market. The second largest in the world behind the great USA,” Lutnick said in a post on X.

He highlighted the key provisions, including tariff elimination and market access. “This deal: Eliminates EU tariffs on all U.S. industrial goods, creates historic access to the vast European markets for American farmers, fishermen and ranchers, delivers $750B in European energy demand during President Trump’s term, and EU firms will invest an additional $600B in new investments in America,” he wrote.

Lutnick added, “The America First Trade Agenda has secured the most important trading partner creating a major win for American workers, U.S. industries, and our national security. Tariffs should be one of America’s favorite words.”

A joint statement by the United States and the European Union said the Framework Agreement represented “a concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment.” The statement said the deal “will put our trade and investment relationship – one of the largest in the world – on a solid footing and will reinvigorate our economies’ reindustrialization.”

Under the agreement, the EU intends to eliminate tariffs on all US industrial goods and provide preferential access to American agricultural and seafood products, including dairy, pork, fruits, vegetables, soybean oil, and processed lobster. In return, the US committed to applying a maximum 15% tariff on a range of EU goods, with exemptions for aircraft, pharmaceuticals, and natural resources.

Energy and technology trade form a major part of the framework. The EU plans to procure $750 billion worth of US liquefied natural gas, oil, and nuclear energy products through 2028, as well as at least $40 billion in American AI chips. European companies are also expected to invest $600 billion in US sectors during the same period.

The deal also includes commitments to strengthen transatlantic defense cooperation, address non-tariff barriers, harmonize automobile standards, and negotiate a mutual recognition agreement on cybersecurity. Both sides pledged to coordinate on intellectual property, labor rights, and critical minerals supply chains.