US-EU Trade Deal
SEPTEMBER 2, 2025
GEORGIA CHAMBER OF COMMERCE
US-EU Trade Deal
On July 27, the United States and the European Union announced a trade deal. On August 21, the United States and the European Union issued a joint statement outlining the framework of the announced trade agreement.
1.Trade Deal Highlights
The United States will impose a 15% tariff on most goods from the European Union This will include pharmaceuticals, semiconductor chips, and lumber, which were previously discussed to be at higher rates.
The tariff rate is set at 27.5% for European automobiles and automobile parts, with a possible reduction to 15% pending “necessary legislative proposal” from the EU.
Specifically, the European Union must introduce legislation to eliminate tariffs on all U.S. industrial goods and many agricultural products, including tree nuts, dairy products, fresh and processed fruits and vegetables, among other items.
Once finalized, automobile tariffs will be lowered retroactively to the first day of the month in which the European Union’s legislation is introduced.
The European Union intends to procure U.S. liquified natural gas, oil, and nuclear energy products with an expected offtake valued at $750 billion through 2028.
Additionally, the EU intends to purchase at least $40 billion worth of U.S. AI chips for its computing centers and collaborate with the U.S. on technology security requirements.
European companies are also expected to invest an additional $600 billion across strategic sectors in the United States through 2028.
Finally, the European Union will substantially increase procurement of military and defense equipment from the United States, with the support and facilitation of the U.S. government.
2.Impacts on Georgia
In 2024, Georgia’s top imported products were:
$15 BILLION
$5.7 BILLION
$4.2 BILLION
$3.8 BILLION
$4.7 BILLION
In 2024, Georgia’s top exported products were:
Civilian Aircraft & Ancillary Parts
$12.6 BILLION
Germany is Georgia’s fourth-largest trading partner, with $14.3 billion worth of bilateral trade in 2024. Greater predictability with the European Union through a finalized agreement will aid Georgia businesses in planning, especially because many of the state’s top imports are addressed through this agreement. Motor
$1.6 BILLION
$2.4 BILLION
Data
$1.8 BILLION
$1.3 BILLION