EU and US agree trade deal, with 15% tariffs for European exports to America
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Trump and von der Leyen seal EU-US trade agreement with 15% tariff compromise, easing fears of transatlantic trade war.
US and EU Reach Landmark Trade Deal, Slashing Tariffs but Leaving Tensions
In a dramatic turn in transatlantic relations, the United States and European Union have reached a new trade agreement, easing months of rising tensions. After last-ditch negotiations at Donald Trump’s Turnberry golf resort in Scotland, the two sides agreed to a 15% US tariff on EU exports significantly lower than the 30% rate the US president had threatened to impose.
President Trump hailed it as a “good deal for everybody,” while European Commission President Ursula von der Leyen praised the outcome of “tough negotiations,” describing the agreement as a stabilizing “framework” with more details to be worked out in the coming weeks.
Tariffs and Exemptions
New US tariff: 15% on most EU goods
Exemptions: Certain aircraft and components, chemicals, and agricultural goods
Not exempt: Steel and aluminium remain under the US’s global 50% tariff
French and Dutch alcohol producers are still lobbying for sector-specific relief
Trump also announced the EU will commit to:
$600 billion in new US investment, including in military equipment
$750 billion in US energy imports over three years, including liquefied natural gas and nuclear fuel
Von der Leyen framed the energy investment as part of Europe’s effort to diversify away from Russian energy dependence.
Mixed Reactions in Europe
While both leaders presented the deal as a win, reactions across Europe were measured:
France’s Benjamin Haddad said the agreement “brings temporary stability” but remains “unbalanced”
Ireland’s PM Micheál Martin noted trade would still be “more expensive and challenging”
Germany’s Chancellor Friedrich Merz welcomed the avoidance of a trade conflict
Italy’s Giorgia Meloni said she needed to see the full details before commenting further
A Major Win for Trump
The agreement adds to Trump’s series of bilateral trade deals, following similar accords with the UK, Japan, Indonesia, the Philippines, and Vietnam. Though he fell short of his promise of “90 deals in 90 days,” this pact with the EU covering nearly $1 trillion in goods traded annually is being touted as the largest trade deal in history.
Trump emphasized that the new arrangement would boost US manufacturing and reduce the trade deficit, a persistent issue for his administration. In 2024, the US imported $606 billion in goods from the EU but exported just $370 billion.
Political Optics and Next Steps
The deal still needs formal approval from all 27 EU member states, who were scheduled to receive a commission debrief on Monday. With European unity tested and industries pushing for favorable carve-outs, negotiations on technical specifics will continue.
Trump celebrated the deal with family and close allies after completing a round of golf. On Monday, he is set to meet UK Prime Minister Keir Starmer, with additional announcements anticipated, including a potential deal on semiconductors.
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