U.S. President Donald Trump shakes arms 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 vehicles.
Some merchandise, together with aircrafts and their parts, some chemical compounds and prescription 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 in opposition to america’ 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 price of U.S. vitality and make investments a further $600 billion price 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} price of army gear,” however didn’t present a selected greenback quantity.
“It is a very highly effective deal, it is a very large deal, it is the largest 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 in regards to 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 situation 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.”
European leaders react
European leaders have been fast to applaud the settlement amid aid that the bloc had seemingly averted a commerce battle, however some voiced warning in regards to the phrases of the deal.
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 line 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 costlier and tougher,” Eire’s Division of the Taoiseach stated.
Nonetheless, the settlement “creates a brand new period of stability,” the assertion continued.
German Chancellor Friedrich Merz welcomed the brand new accord, citing the advantages it might 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 financial system arduous, has been averted,” he stated in a assertion.
“That is very true for the auto trade, for which the present tariffs of 27.5% have been virtually halved to fifteen%. Particularly right here the fast tariff discount is of nice significance,” he added.
Netherlands Prime Minister Dick Schoof stated, in a submit on X Sunday, that “no tariffs would have been higher,” however praised the European Fee for securing the perfect settlement potential.
He stated the deal underway “offers extra readability for our companies and brings extra market stability.”
Italy’s authorities leaders, together with Prime Minister Giorgia Meloni, issued a press release saying the deal helps keep away from a “direct conflict between the 2 sides of the Atlantic,” and “ensures stability” between the U.S. and European Union.
The assertion additionally stated Italy thought of tariffs at 15% to be “sustainable,” if that proportion consists of, and isn’t along with, earlier tariffs.
The U.S.-EU commerce relationship was valued at 1.68 trillion euros ($1.97 trillion) when considering each companies and items buying and selling in 2024, in line with the European Council.
Whereas the EU recorded a surplus on items buying and selling, it famous a deficit within the companies realm. This left the EU with an general commerce surplus of round 50 billion euros with the U.S. final yr.
— CNBC’s Terri Cullen contributed to this report.
