This collaboration proposal is part of a broader initiative aimed at avoiding significant tariffs on European goods, with more details anticipated to be disclosed on May 8, 2025.

Currently, EU goods are subject to a 25% tariff on cars, steel, and aluminum exported to the US, in addition to a 10% general levy on other products.

In response to these tariffs, the EU has proposed 'rebalancing measures,' which may include retaliatory tariffs worth €100 billion on US goods if negotiations do not progress favorably.

This potential retaliatory action follows a pause on €21 billion in duties on US goods, which the EU had suspended after former President Donald Trump announced a 90-day hold on reciprocal tariffs.

European Commissioner for Trade Maro Šefčovič emphasized the shared interests of the EU and US in AI, particularly in establishing necessary manufacturing facilities for major tech companies like Apple, Google, and Meta.

Šefčovič noted the EU's strength in chip-making equipment manufacturing and the US's leadership in semiconductor design, suggesting that collaboration could be mutually beneficial.

Key players in this collaboration include Dutch firm ASML, renowned for its lithography machines, and US chipmaker Nvidia, one of the world's most valuable companies.

Addressing competition from China, Šefčovič stressed the importance of a coordinated EU-US approach to critical minerals and tackling Chinese steel overcapacity.

Additionally, Šefčovič indicated that the plan would reaffirm previous EU commitments to increase purchases of US liquefied natural gas and soybeans.

On May 7, 2025, the European Commission unveiled plans to enhance cooperation with the United States on artificial intelligence to avert a potential trade war.