The United States and European Union have detailed a new trade framework aimed at resolving imbalances through mutual concessions and coordinated policies, as reported by Yahoo Finance. Under the agreement, the EU will eliminate all tariffs on U.S. industrial goods and provide preferential access for key American agricultural products, including tree nuts, dairy, and meat. In return, the U.S. commits to capping tariffs on most EU goods at a maximum of 15%.

Read alao: US-EU Trade Deal: Divergent Views and Ongoing Negotiations

A significant energy component involves the EU’s pledge to procure approximately $750 billion in U.S. liquefied natural gas, oil, and nuclear energy products by 2028. According to data from the IndexBox platform, this commitment aligns with the growing U.S. export volumes in the energy sector. Additionally, the EU will purchase $40 billion in American AI chips for computing centers.

The deal addresses non-tariff barriers through the mutual recognition of automobile standards and modifications to the EU’s Carbon Border Adjustment Mechanism. It also establishes new digital trade parameters, with both parties agreeing not to impose customs duties on electronic transmissions. European companies are expected to invest an additional $600 billion in strategic U.S. sectors through 2028.

Reactions to the agreement were mixed. A U.S. official hailed it as a major win for American workers and industries. A European geopolitical analyst, however, suggested the EU traded strategic autonomy for stability, securing defensive tariff ceilings while the U.S. gained offensive market access.

Source: IndexBox Market Intelligence Platform