January 1, EU Ends Tariffs, Pours Billions Into US Industry

Wyatt’s Take

• Europe ending all tariffs on US industrial goods
• Massive EU investments coming to American industries
• Deal boosts US jobs, energy, and national security

The European Union has agreed to remove all tariffs on American industrial products and plans to pour billions into the US economy. This new trade pact also gives US seafood and farm products better access to European markets.

Most European products coming to the US will now face a 15% tariff, including things like medicine, lumber, and computer parts. The White House says this agreement will “reinvigorate our economies’ reindustrialization” and address long-standing trade imbalances.

“This Framework Agreement will put our trade and investment relationship – one of the largest in the world — on a solid footing and will reinvigorate our economies’ reindustrialization,” the joint statement reads. “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.”

Europe will purchase about $750 billion in American energy, including liquified natural gas, oil, and nuclear goods, plus $40 billion in AI chips through 2028. European businesses also plan to invest another $600 billion in US projects.

“This investment reflects the European Union’s strong commitment to the transatlantic partnership and its recognition of the United States as the most secure and innovative destination for foreign investment,” the framework said.

Once Europe follows through on ending tariffs, America will drop tariffs on European cars and auto parts, which right now are at 27.5%. Europe has also agreed to buy more US-made defense equipment to strengthen NATO.

European Commission President Ursula von der Leyen said the deal will deliver “predictability for our companies & consumers,” “stability in the largest trading partnership in the world,” and “security for European jobs & economic growth in the long-term.”

Commerce Secretary Howard Lutnick called the agreement “historic.”

“The America First Trade Agenda has secured the most important trading partner creating a major win for American workers, U.S. industries, and our national security,” he said. “Tariffs should be one of America’s favorite words.”

This deal means more jobs, investment, and opportunities right here in the heartland. Stay alert—the future of our economy is being shaped now.

Wyatt Matters

When powerful countries put American workers and industries first, it means steady jobs, rising paychecks, and a fair shake for our communities. Deals like this show that standing strong brings good things home to the folks who keep this country running.

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