EU, US roll out trade deal details, wines, digital rules excluded

BRUSSELS - The European Union (EU) and the United States on Thursday unveiled details of a July trade framework, setting tariff limits but leaving out key sectors such as wines and digital rules.

According to a joint statement, the United States will impose a maximum all-inclusive tariff of 15 percent on most EU exports, including cars, pharmaceuticals, semiconductors and lumber.

Certain products, including cork, aircraft and aircraft parts, as well as generic pharmaceuticals and their ingredients and chemical precursors, are exempt from the new tariff cap and will continue to face only their existing most-favored-nation duties.

The EU, in turn, pledged to remove tariffs on all US industrial goods and expand market access for American seafood and agricultural products. The bloc also committed to procure 750 billion US dollars' worth of US liquefied natural gas, oil and nuclear energy products through 2028, alongside 40 billion dollars in US artificial intelligence chips. EU companies are expected to invest 600 billion dollars in strategic US sectors, while procurement of US defense equipment will also increase.

European Commissioner for Trade and Economic Security Maros Sefcovic acknowledged that wine and spirits, "a very important offensive interest for the EU," were not included in the tariff reduction list. "These doors are not closed forever," he said at a press conference, adding that discussions with Washington on the matter would continue.

He also noted that digital regulatory issues, including digital services rules and a proposed digital services tax, were not part of the current talks. "Regulatory autonomy is absolutely important, and that was our position from the beginning," he said.

Carsten Brzeski, global head of Macro at ING Research, said the joint statement mainly reinforced the impression already formed after the Scotland deal: "The only real upside for Europe is that the outcome could have been worse, and that there is now some clarity."

However, he warned that such clarity remains fragile and could quickly unravel, as the agreement contains numerous elements that could spark tensions and escalation. "It is difficult to call this a deal when it reads more like a document of damage control for Europe," Brzeski added.