The US-EU Framework Agreement

Leia o acordo na integra AQUI: declaração conjunta

A União Europeia e os Estados Unidos publicaram a declaração conjunta que estabelece o quadro para o comércio e investimento transatlânticos, e baseia-se no acordo político alcançado pela presidente Ursula von der Leyen e pelo presidente Trump a 27 de julho. A declaração conjunta estabelece o compromisso de ambas as partes de trabalharem no sentido de restabelecer a estabilidade e a previsibilidade do comércio e do investimento entre a UE e os EUA.

The United States and the European Union have agreed on a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade (“Framework Agreement”). The agreement aims to strengthen trade and investment relations, support economic reindustrialisation, and address trade imbalances. It represents a first step in a process that may expand over time to cover additional areas and increase market access.

Special attention is given to sectors of strategic importance for Portuguese companies, such as cork and pharmaceuticals, ensuring stronger trade relations and supply chain stability in these sectors.

Key Elements of this Agreement:

1. Tariffs and Market Access

The United States will apply either the Most Favored Nation (MFN) tariff or a combined 15% tariff on EU goods.

The U.S. will apply only the MFN tariff on certain products of particular importance, such as cork and pharmaceuticals and their chemical precursors, ensuring smoother trade flows for these key sectors.

The EU will eliminate tariffs on all U.S. industrial goods and provide preferential access for various U.S. seafood and agricultural products.

2. Sector-Specific Measures

Tariffs on EU pharmaceuticals, semiconductors, lumber, automobiles, and automobile parts will be reduced according to the Framework. For steel, aluminium, and derivative products, the parties will explore measures to manage overcapacity while ensuring secure supply chains.

3. Energy and Technology Cooperation

The EU intends to procure U.S. liquefied natural gas, oil, nuclear energy products, and AI chips. Both parties will coordinate on technology security requirements and support secure, diversified energy supplies.

4. Investment

Mutual investment stocks exceed $5 trillion, with European companies expected to invest an additional $600 billion in the U.S. by 2028.

5. Defense

The European Union will increase procurement of U.S. military and defence equipment, strengthening transatlantic defence cooperation and NATO interoperability.

6. Regulation

The EU will address U.S. concerns regarding the Deforestation Regulation, CBAM, CSDDD, and CSRD.

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July 2025

EU-US trade deal brings relief to transatlantic business

AmCham Portugal supports American Chamber of Commerce to the European Union (AmCham EU)’s statement following yesterday’s announcement of a deal between the EU and the US about tariffs:

The framework agreement reached between the EU and the US provides relief to businesses bracing for significant disruption across global supply chains. The deal brings much-needed de-escalation in the ongoing dispute and greater certainty for companies. However, a 15% tariff still marks a significant increase in the cost of trading across the Atlantic for many sectors. 

The EU and the US must now build on this deal to reach a permanent agreement, with technical details defined as soon as possible. Clarity over implementation, including next steps for Section 232 tariffs, will be critical for companies, who need a predictable framework to operate. The EU and the US should expand the number of sectors included in the deal’s zero-for-zero tariff list, with the goal of creating a zero-tariff zone across the Atlantic.  

Ultimately, the two sides should advance regulatory cooperation and a shared approach to common geopolitical challenges. The commitment to work more closely on issues such as energy, defence, technology and global overcapacity is a constructive first step in reinforcing the transatlantic economic partnership. 

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EU–US Trade Agreement

July 2025

Summary

• Averts a full-blown trade war between the US and EU.
• Sets a 15% baseline tariff on most EU exports to the US (previously 10%).
• Steel remains at 50% tariff; cars drop from 27.5% to 15%.
• Applies to 70% of EU exports, worth €380bn annually.

EU agrees to:

• Buy $750bn in US energy over 3 years.
• Aggregate and declare $600bn in investments in the US.
• In return, US exports to the EU, including cars, become duty-free.

Donald Trump:

• Secured an asymmetrical deal, benefiting US exports and energy sector.
• Claimed victory by presenting the EU investment pledge as larger than Japan’s.
• US enegy and car sectors gain a competitive edge in Europe.

Europe

• EU exporters, especially in automotive, wine, spirits, and agrifood sectors – lose
• WTO pharma zero-tariff pact ends.

Pharmaceuticals:

• Remain zero-rated for now; Trump committed not to exceed 15% in future.
• Zero tariffs for some goods: aircraft parts, chemicals, some generics, semiconductors, select agri-products, critical raw materials.

France:

• Strongly criticises the deal as a capitulation to Trump’s pressure.
• French trade minister called for a firmer EU retaliation.
• French PM called it a “dark day” for the EU.
• France vocally opposed the deal but cannot block it.

Trade is an EU Commission competency; France is isolated, aside from Hungary.

Implementation Timeline

Tariffs begin Friday.

Legal formalisation:

• US to enact via executive orders.
• EU requires legal instruments or agreements, taking weeks or months.
• A joint statement expected Friday; legal text to follow.

Commission’s Defence

• Alternative was a trade war, says EU Trade Commissioner Šefčovič.
• Trump started by demanding 30%, then 21%, before agreeing to 15%.
• Atmosphere during talks at Trump’s Turnberry resort described as tense.
• EU insists it kept member states informed since Trump’s “Liberation Day” tariffs (2 April).
• Commissioner admits pre-2 April conditions are gone for good.

Ongoing Talks & Sector Notes

Wine and spirits:

• Still under negotiation.
• Irish whiskey and major European wine producers (France, Italy, Spain, Portugal) lobbying hard.

Agrifood:

• EU keeps protections against non-compliant US imports.
• Lifts tariffs on products it can’t source domestically (e.g. some nuts, fish, pet food).
• Expands bison meat quota at preferred tariff rate.

Portugal Sectoral and Institutional Reactions

1. CIP (Portuguese Business Confederation) – Rafael Alves Rocha

• Agreement ends months of “uncertainty and ambiguity”.
• Predictability is vital for Portuguese companies.
• But a 15% tariff (vs. 10%) still has very negative consequences.

1. AEP (Portuguese Business Association) – Luís Miguel Ribeiro

• Concerned that EU’s treatment is worse than the UK’s, though equal to Japan’s.
• Warns of added pressure on Portuguese exports due to euro appreciation.
• Sectors most exposed: food, textiles, footwear, chemicals, metalworking, machinery.
• Indirect Risks:  If other EU countries see their US exports drop, demand for Portuguese inputs will also fall. Auto and textile sectors especially vulnerable via this indirect channel.

1. Logoplaste (Packaging firm) – Filipe de Botton

• Emphasizes previsibility as key for business.
• Questions how long the deal will last under Trump’s “irrational” administration.

1. AIMMAP (Metallurgical and Metalworking Association) – Rafael Campos Pereira

• 15% tariffs are painful, but “manageable” compared to feared 30%.
• Concern remains over aluminium and steel tariffs (still at 50%).
• Critical to assess if finished or semi-finished products are included.

1. APICCAPS (Footwear Association) – Paulo Gonçalves

• 15% tariff is better than expected and provides stability.
• Sector had grown 5% until May, except in the US, where growth stalled.
• Highlights potential for new trade deals, especially with China.

1. ViniPortugal (Wine Association) – Frederico Falcão

• Sells €102M in wine to US; worried tariffs may inflate prices by over 20% due to multilayered US distribution.
• Calls for 0% tariff on wine; fears 15% could lead to a 20% drop in market share.
• Companies previously mitigated 10% tariffs through stockpiling or absorbing costs — harder to do with 15%.

1. ANIMEE (Electrical Industry Association) – Aurélio Caldeira

• Calls the deal a “ceasefire, not peace”, but welcomes clarity and investment confidence.

1. ATP (Textile Association) – Mário Machado

• Calls it a bad but necessary deal, as EU couldn’t afford a trade war.
• Tariffs worsen the situation in a sector already pressured by Chinese competition.

1. AFIA (Automotive Suppliers Association):

• Welcomes stability but uncertain if auto parts are covered under Section 232 tariffs.
• Fears components may face higher tariffs than final products (OEMs).

1. AEMinho (Minho Business Association) – Ramiro Brito

• Harshly critical: sees the deal as Europe surrendering to Trump’s erratic behavior.
• Predicts short-term US gain, long-term EU loss; calls it a strategic failure.

1. AIP (Industry Association of Portugal) – José Eduardo Carvalho

• Notes 15% is better than Trump’s proposed 30%, but worse than the EU’s desired zero-for-zero deal.
• Some firms considering direct investment in the US to bypass future tariffs.