U.S. President Donald Trump shakes fingers 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 cope with 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 vehicles.
The speed is decrease than the 30% charge he had beforehand threatened towards the US’ largest buying and selling companion, 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 massive deal, it is the most important of all of the offers,” Trump stated alongside von der Leyen.
“It is a whole lot, it is an enormous deal, with powerful 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 likelihood they might attain a framework of a deal.
Brussels had been getting ready for a no-deal situation if the commerce talks devolved forward of Aug. 1.
Lawmakers had permitted a serious bundle of counter-tariffs, which might have focused a variety 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 stated the settlement “brings readability and predictability to the buying and selling relationship between the EU and the US,” in accordance with a assertion.
“It does imply that there’ll now be larger tariffs than there have been and this can 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.
The U.S.-EU commerce relationship was valued at 1.68 trillion euros ($1.97 trillion) when making an allowance for each providers and items buying and selling in 2024, in accordance with 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 12 months.
It is a breaking information story, please test again for updates.