The U.S. has released details on the framework for a trade agreement with the European Union. Allie Kelly, a Business Insider economy reporter, joins CBS News with more information.

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Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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The United States and the European Union have released details about a new framework for their trade agreement, which aims to solidify and expand their economic relationship. The agreement features a 15 percent blanket tariff, significantly lower than previous proposals, and is designed to facilitate continued investment and trade between the two economies.

Under the framework, the EU will increase investments in U.S. energy, agriculture, and seafood, while the U.S. will offer the EU preferential market access for its products. Both parties intend for this agreement to serve as a foundation for further cooperation in the future. The announcement comes as broader economic policy discussions continue, including upcoming remarks from Federal Reserve Chair Jerome Powell.

U.S. reaches EU trade agreement framework

The U.S. and the European Union have revealed new details about the framework of their trade agreement made last month. In a joint statement, the two sides say the agreement puts their trade and investment relationship on solid footing. Now, both sides intend for the agreement to be a first step in a process that can be further expanded over time. So I want to bring in Business Insider Economy reporter Ali Kelly, who joins me now from New York City. Ali, thank you so much for making time for us on 24-7 today. Can you walk us through the major details that are in the joint statement? And is this a win, do you think, for the White House? Absolutely. Thank you so much for having me. It's really important to follow this trade deal because the U.S. and the EU's trade relationship is really closely tied together. So the key points of this deal is we're kind of looking at a 15 percent blanket tariff, which is almost half of what Trump had initially suggested in this relationship and trade deal with the European Union. The EU and the U.S. are, as I said, deeply intertwined. The EU sends the U.S. a lot of pharma, autos, semiconductors, raw materials like cork and airline parts and things like that. And the U.S. then sends the EU a lot of agriculture, seafood, energy. So what this trade deal is really going to do is it's going to make sure that these two economies can continue to invest in one another. The European Union has agreed to deeply invest in U.S. energy specifically, as well as other goods like agriculture and seafood, and continue to buy those. And in return, the United States is giving the European Union a lot of preferential treatment in terms of where their products appear in the market and making sure that this trade relationship continues for years to come. Right. OK, let's pivot and talk about Fed Chair Jerome Powell, because he will give what will likely be his last major speech as the leader of the central bank on Friday. His term ends in May of next year. So any chances that he will actually address the central bank's outlook and recent comments from the Trump administration in his speech? Absolutely. So this is really Jerome Powell's biggest speech of the year, is this Jackson Hole policy symposium. And the Fed chair is not expected to make any major announcements, but he is likely in some way to preview what is coming for the rest of the year. The Federal Reserve has penciled in two rate cuts in 2025, and that has not happened yet. We've been holding rates steady this year. And the president, the Trump administration, and several investors and economists are kind of looking at, is it time to cut rates? And what would that mean? There's been a lot of pressure from the White House specifically on Powell and the data that Powell is using in order to make these decisions. And so we're really looking whether Powell and the Federal Reserve are looking to make that rate cut in its September meeting. Okay. Allie Kelly, I love your name, by the way. Thank you so much for your analysis today.

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U.S. reaches EU trade agreement framework

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