By Tom Ozimek

The United States and European Union on Thursday issued a joint statement on Aug. 21 revealing details of a transatlantic trade agreement that sets a 15 percent ceiling on most U.S. tariffs applied to EU exports, including cars, pharmaceuticals, semiconductors, and lumber.

The deal builds on the political agreement struck by President Donald Trump and European Commission President Ursula von der Leyen in late July, following weeks of negotiations between EU Trade Commissioner Maros Sefcovic, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. It also creates exemptions for sectors such as aircraft, cork, and generic pharmaceuticals, while committing both sides to strengthen supply chains in steel and aluminum through a tariff rate quota system.

Under the terms, the 15 percent ceiling will apply to autos and auto parts once Brussels initiates the procedures to cut tariffs on U.S. goods. The European Commission said it will move quickly to implement the measures, suspend recently adopted rebalancing tariffs, and continue talks aimed at further tariff reductions and expanded cooperation in strategic sectors.