Remarks by Commissioner Šefčovič on the trade deal between the EU and the US

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Good afternoon, everyone. I am glad to be here today to follow up on the breakthrough achieved in Scotland yesterday. It was an honour to join Commission President von der Leyen at the pivotal meeting with US President Trump.

If I were to sum up this EU-US agreement in one sentence, I would say it brings renewed stability and opens the door to strategic collaboration.

This is the result of months of genuine and relentless efforts – unmatched in their intensity and matched only by the unparalleled importance of our transatlantic trade. Its 1.7-trillion-dollar value underscores just how much was at stake.

From the start, we have been convinced that our transatlantic relationship deserves a negotiated outcome. That is why my team and I made ten visits to Washington.

Given the depth of integration and mutual reliance of our economies, it was essential to take the time needed to get this right – to calibrate an outcome that works for both the EU and the US, as well as ensures that trade between us can continue.

Let’s pause for a moment and consider an alternative. A trade war may seem appealing to some, but it comes with serious consequences. With at least a 30-percent tariff, our transatlantic trade would effectively come to a halt, putting close to five million of jobs – including those in SMEs – at risk.

Our businesses have sent us a unanimous message: avoid escalation and work towards a solution that delivers immediate relief. I appreciate that several business groups have welcomed the contours of the deal.

The sense of stability and prospects of strategic collaboration are reinforced by the fact that the agreement addresses not only current reciprocal and high sectoral tariffs, but also forthcoming tariffs on pharmaceuticals, semiconductors and lumber.

You are now familiar with the key pillars of the deal discussed in Scotland, notably a single 15-percent tariff ceiling, then 750 billion dollars in strategic purchases, and an additional 600 billion dollars in anticipated private investments into the US economy.

On top of that, let me highlight the following three points.

First, over the past few months, we have gained a better mutual understanding of each side’s sensitivities. As stated before, we can relate to the objective of reindustrialising the US economy, as we are pursuing the same goal ourselves.

That is why the agreement sees a significant list of goods on which both sides will apply a zero-tariff rate where it is in our shared interest to strengthen our trade. Importantly, this list remains open to further additions.

Second, we also believe that certain aspects of global trade policy need fundamental change. For instance, non-market overcapacity is equally destroying the EU steel industry.

That is why the agreement sees clear prospects of joint action on steel, aluminium, copper and their derivatives in what I like to call “a metals alliance” – effectively creating a joint ringfence around our respective economies through tariff rate quotas at historic levels with preferential treatment.

We will also establish a common approach to addressing source economies of overcapacity.

Moreover, we are reducing tariffs on our cars from the current 27.5 percent to 15 percent, while enabling EU carmakers to expand their exports from the US.

This will enhance their global standing and strengthen our value chain, as numerous European SMEs support production activities in the US.

Third, we believe we need to think strategically about future technologies.

That is why the agreement also sees strategic purchases of gas, oil, nuclear, but also US AI chips. Here, the aim is to strengthen our technological edge in a way that benefits both sides.

All in all, this is an agreement, which should generate meaningful and mutual benefits – and I hope it will be a stepping stone to a broader EU-US trade and investment agreement in the future, while also fostering our joint efforts to tackle pressing global challenges, such as the much-needed reform of the WTO.

We have been in constant dialogue with our Member States and key stakeholders, and I want to sincerely thank them for their trust in the Commission and our continued unity throughout this process.

This morning, we briefed Member States as well as Members of the European Parliament.

In conclusion, I want to appreciate once again the leadership of President von der Leyen as well as the collaboration with my counterparts for the countless hours of intensive engagement, which I hope will pay off.

Thank you.