Commerce Secretary Lutnick: The key to why the EU did the deal is autos and pharmaceuticals

Trade Agreement Overview - The US-EU trade deal involves the EU committing to $750 billion in energy purchases (natural gas, oil, and nuclear) and $600 billion of companies investing in America [4] - The agreement includes a 15% tariff imposed by the US on European goods [4] - The EU has a $235 billion trade surplus with the US annually [7] - The US currently has a $12 trillion global trade deficit [8] Strategic Rationale - The US aims to reduce its trade deficit either through onshoring or tariffs [8] - The US President believes the 15% tariffs should be permanent [6] - The EU accepted the 15% tariff level to avoid more drastic measures, such as higher tariffs on autos (25%) and pharmaceuticals [10][14][15] - The EU wants to protect its companies from relocating to America [10] Key Industries - Autos and pharmaceuticals are key industries in the trade negotiations [9] - The US pharmaceutical policy will likely impose higher tariffs on drugs made overseas [14] Uncertainties and Future Outlook - The agreement is a framework and not legally binding at this point [10] - Uncertainties remain regarding steel and aluminum tariffs (still at 50%), pharmaceuticals, and natural resources [11] - The EU cannot guarantee meeting purchase and investment targets due to reliance on private funding [12] - The US President aims to achieve trade goals quickly, unlike previous administrations [13]