07:59 AM EDT, 08/21/2025 (MT Newswires) -- (Updates throughout.)

The US and the European Union on Thursday said they have agreed on a trade framework agreement.

"It reflects acknowledgement by the European Union of the concerns of the United States and our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power," the White House said in a statement.

Under the agreement, the EU will eliminate tariffs on all US industrial goods and provide preferential access to a wide range of seafood and agricultural exports.

The US will limit tariffs on EU goods to a maximum of 15% in key sectors or the US most favored nation tariff rate, whichever is higher, the statement said.

The US also agreed to reduce Section 232 tariffs on European automobiles and autoparts once the EU enacts legislative proposals on tariff reductions.

Additionally, the EU committed to procure $750 billion of US liquefied natural gas, oil, and nuclear energy products through 2028 and at least $40 billion of US AI chips, according to the White House.

European companies are expected to invest an additional $600 billion in US strategic sectors through 2028, the statement said.

The countries also committed to address "unjustified digital trade barriers" and the EU agreed not to adopt or maintain network usage fees.

Defense procurement is also included in the deal with the EU pledging to increase purchases of US military and defense equipment to strengthen NATO interoperability, the statement said.