Trade

Strong albeit imperfect agreement between US and EU

The US-EU trade agreement: details, benefits and future prospects in a global context

by Ursula von der Leyen

24 August 2025

Dazi, concordata dichiarazione congiunta Usa-Ue

4' min read

Intervention in Il Sole 24 Ore, exclusively for Italy, by the President of the European Commission on the US-EU agreement.

More than EUR 4.6 billion worth of goods and services cross the Atlantic every day. With total trade worth €1,680 billion a year, the European Union and the United States of America are linked by the world's most important economic relationship, which is why the agreement reached last month is so important.

Much has been written about this agreement, considerations that deserve a direct response. The agreement is a deliberate choice, the choice of stability and predictability over that of escalation and confrontation. Imagine if only the two major economic powers of the democratic world had failed to reach an agreement and triggered a trade war, it would have been a party in Moscow and Beijing.

Instead, agreement was reached - a strong, if imperfect agreement.

In our eyes, tariffs are taxes that burden consumers and businesses: they increase costs, reduce choice and undermine the competitiveness of economies.

An EU tariff retaliation would risk triggering a costly trade war with negative consequences for European workers, consumers and industries. In any escalation, one fact however would not change: the US would maintain its unpredictable and higher tariffs regime.

The most important element of the agreement reached is the clear 15% tariffs on the vast majority of EU products, including cars and pharmaceuticals. By setting a clear all-inclusive tariff cap, we have offered clarity and stability to the millions of Europeans who make their living from trade with the US.

Dazi, Sefcovic: "Alternativa ad accordo era guerra commerciale con Usa"

Fifteen per cent is the tariffs rate for the European Union, and it is an all-inclusive tariff ceiling. It is 15% without surcharges, in contrast to US agreements with other countries, where the new base rates will be in addition to the old tariffs in force. European goods will thus enter the US market on privileged terms, giving EU companies an unquestionable advantage.

We are the only partner in the US to have obtained an exclusive tariff cap guarantee for pharmaceuticals, semiconductors and timber.

The Union also has no tariffs on a number of strategic products, such as aircraft components and generic drugs.

We are not talking about abstract categories, but about sectors that are crucial for Europe's competitiveness. The tariffs exemption on these products strengthens both the EU and the US. And we have a clear commitment from both sides to continue working to expand the list.

In concluding the agreement, the EU stood firm on its fundamental principles and stuck to the rules it had set for itself. It is up to us to decide how best to guarantee food safety, protect European citizens online and safeguard health and safety. The agreement safeguards the values of the Union while promoting its interests.

The agreement closes a chapter, but the story of Europe's future prosperity is yet to be written. The United States may be our most important trading partner, but the economic relationship that binds us is only one piece in a much larger mosaic: despite being the largest destination for European trade, only about 20 per cent of exported goods are destined for the US.

Europe will therefore continue to strengthen and diversify trade ties with every corner of the world, so as to generate exports, jobs and growth for the Union. In recent months, we have concluded trade agreements with Mexico and Mercosur and deepened ties with Switzerland and the United Kingdom. We have successfully conducted talks with Indonesia and aim to conclude an agreement with India by the end of the year. These partnerships reinforce the bonds of trust and cooperation we have and allow us to work on global challenges, including the modernisation of the international trading system.

Above all, Europe must strengthen its capacity to act in a more volatile world. This effort starts internally, with the completion of the single market. As Mario Draghi rightly said, significant internal barriers and regulatory fragmentation hurt growth much more than any tariff imposed by a third country. Currently, the volume of trade between EU Member States is less than half that between the US federal states. If Europe wants to live up to its potential, this is the most urgent challenge: from cutting red tape to enhancing cross-border services, we know what is needed to boost European competitiveness - and the European Commission has this in its sights.

Europe remains focused on the championship, not the game: it is we who must complete the single market, strengthen the continent's competitiveness and sustainability in the areas of the future, and ensure that our continent remains a pillar of stability in an increasingly uncertain world. If we want a strong and independent Europe, we must have both the ambition and the unity to shape it.