U.S. European Union Agree to Lumber Tariffs of 15%

The United States and the European Union announced a trade agreement Thursday to limit tariffs on lumber, pharmaceuticals and semiconductors imported from the European Union to 15% starting Sept. 1.

This deal wards off President Donald Trump's threat of a 30% rate if no deal was reached by Aug. 1.

In exchange for the lower tariff rates, European companies are expected to invest heavily in U.S. sectors such as advanced manufacturing, semiconductors, and pharmaceuticals, Newsweek reported.

The deal also includes a non-binding commitment for the EU to procure $750 billion in U.S.-produced energy and for EU companies to invest $600 billion in the U.S.