U.S. President Donald Trump shakes palms with European Fee President Ursula von der Leyen, after the announcement of a commerce deal between the U.S. and EU, in Turnberry, Scotland, on July 27, 2025.
Evelyn Hockstein | Reuters
President Donald Trump introduced Sunday that the U.S. reached a commerce take care of the European Union, following pivotal discussions with European Fee President Ursula von der Leyen days earlier than the Aug. 1 tariff deadline.
Trump stated that the deal imposes a 15% tariff on most European items to the U.S., together with automobiles.
Some merchandise, together with aircrafts and their parts, some chemical substances and prescribed drugs, is not going to be topic to tariffs, von der Leyen stated in a briefing after the settlement was introduced. She additionally stated that the brand new 15% tariff fee wouldn’t be added to any tariffs already in impact.
The 15% tariff fee is decrease than the 30% fee Trump had beforehand threatened towards the US’ largest buying and selling accomplice, however larger than the ten% baseline tariffs the EU hoped for.
Trump stated that the 27-member bloc additionally agreed to buy $750 billion value of U.S. power and make investments a further $600 billion value of investments into the U.S. above present ranges.
He stated that the bloc would even be “buying a whole lot of billions of {dollars} value of army gear,” however didn’t present a selected greenback quantity.
“It is a very highly effective deal, it is a very huge deal, it is the most important of all of the offers,” Trump stated Sunday alongside von der Leyen.
“It is a whole lot, it is an enormous deal, with robust negotiations,” von der Leyen stated after the assembly.
Whereas questions stay concerning the particular particulars and timeline of the EU investments, the settlement marks a pivotal second for Trump, following weeks of uncertainty surrounding the U.S.-EU commerce talks.
Trump throughout a press convention earlier than his assembly with the European chief stated that there was a 50-50 probability they might attain a framework of a deal.
Brussels had been getting ready for a no-deal state of affairs if the commerce talks devolved forward of Aug. 1.
Lawmakers had permitted a significant package deal of counter-tariffs, which might have focused a spread of U.S. items. The bloc additionally thought of deploying the EU’s “Anti-Coercion Instrument,” a transfer seen because the buying and selling bloc’s “commerce bazooka.”
Eire’s Prime Minister Micheál Martin stated the settlement “brings readability and predictability to the buying and selling relationship between the EU and the US,” in response to a assertion.
“It does imply that there’ll now be larger tariffs than there have been and it will have an effect on commerce between the EU and the US, making it dearer and more difficult,” Eire’s Division of the Taoiseach stated.
Nonetheless, the settlement “creates a brand new period of stability,” the assertion continued.
German Chancellor Friedrich Merz additionally welcomed the brand new accord, citing the advantages it will convey to the nation’s auto trade.
“With the settlement within the EU-US negotiations on tariffs a commerce battle, which might have hit the export-oriented German economic system laborious, has been prevented,” he stated in a assertion.
“That is very true for the auto trade, for which the present tariffs of 27.5% had been nearly halved to fifteen%. Particularly right here the fast tariff discount is of nice significance,” he added.
The U.S.-EU commerce relationship was valued at 1.68 trillion euros ($1.97 trillion) when bearing in mind each providers and items buying and selling in 2024, in response to the European Council.
Whereas the EU recorded a surplus on items buying and selling, it famous a deficit within the providers realm. This left the EU with an general commerce surplus of round 50 billion euros with the U.S. final yr.
