The US and the EU established a written framework on Thursday for the trade deal agreed to on July 27. The terms include a 15% US tariff on most EU imports: These include autos, pharmaceutical goods, semiconductors, and lumber — but not wine and spirits.
The two sides also outlined the EU’s promise to remove tariffs on US industrial goods and give better access to US seafood and agricultural products.
“The United States and the European Union, in line with their relevant internal procedures, will promptly document the Agreement on Reciprocal, Fair, and Balanced Trade to implement this Framework Agreement,” the statement concluded.
On Wednesday, US Treasury Secretary Scott Bessent said the US is content with its current tariff setup with China, signaling the Trump administration wants stability ahead of the November trade truce deadline.
In a Fox News interview, Bessent said the status quo is “working pretty well” and called China the biggest source of tariff revenue.
Bessent went on to add in a further interview with CNBC that he expects tariff revenues under President Trump to exceed his earlier $300 billion estimate, with the money going to pay down the federal debt rather than rebate checks for Americans.
“I’ve been saying that tariff revenue could be $300 billion this year. I’m going to have to revise that up substantially,” Bessent said.
Earlier this week, S&P Global Ratings affirmed the US’s AA+ long-term credit rating with a stable outlook, saying tariff revenues will help offset the fiscal blow from President Trump’s recent tax and spending bill.
The agency’s view comes despite Trump’s sweeping tariffs, which have rattled markets and strained trade ties.
Earlier this month, Trump unveiled “reciprocal” tariffs on dozens of US trade partners (which you can see in the graphic below).
The biggest negotiations to watch in the coming months are Canada, Mexico, and China.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1724 updates
(Reuters) – S&P Global Ratings’ decision to affirm its U.S. credit rating reflected the impact of tariff revenues, but questions remain on the economic outcome of U.S. trade policies that could influence the country’s rating in the next few years, the primary analyst on the U.S. said.
S&P on Monday affirmed its “AA+” credit rating on the U.S., saying the revenue from President Donald Trump’s tariffs has the potential to offset the fiscal hit from his massive tax-cut and spending bill. S&P, which became the first ratings agency to cut the pristine U.S. government rating in 2011, said the outlook on the U.S. rating remains stable.
“Outcomes are what’s really going to weigh and inform the rating,” Lisa Schineller, primary U.S. analyst at S&P Global Ratings, said in an interview.
“The outcomes of how you execute the budgetary legislation, how the tariff revenue comes, their combined impact on growth and investment that leads to either better or worse or similar fiscal out-turns, that’s our focus,” she said.
