EU and US Reach $750 Billion Trade Agreement, Including Energy and AI Chips

According to US officials, the deal includes $750 billion in EU purchases of American energy and $40 billion in AI chips, alongside reciprocal tariff reductions on cars and goods.

Summary

The EU and US finalized a trade deal under which the EU will purchase $750 billion in American liquefied natural gas, oil, and nuclear energy products, along with at least $40 billion in AI chips. In exchange, the US will lower tariffs on EU cars to 15% once the EU reduces tariffs on American goods. US officials indicated that the tariff cuts could take effect within weeks.

Terms & Concepts
  • Liquefied Natural Gas (LNG): Natural gas cooled to a liquid state for easier storage and transport, widely used in global energy trade.
  • AI Chips: Specialized semiconductors optimized for artificial intelligence workloads, supporting faster and more efficient machine learning computations.