In a major breakthrough for transatlantic trade relations, the United States and the European Union have reached a comprehensive trade agreement that establishes a baseline tariff of 15% on EU exports to the U.S., ending months of tense negotiations.
The agreement was finalized on Sunday during high-level talks in Scotland between U.S. President Donald Trump and European Commission President Ursula von der Leyen. Both leaders hailed the deal as a historic success, according to DW.COM
“We have reached a deal. It’s a good deal for everybody,” President Trump told reporters. Von der Leyen echoed the sentiment, describing it as “the biggest deal ever,” and emphasized that the agreement “will bring stability and predictability” for businesses on both sides of the Atlantic.
Under the new framework, a flat 15% tariff will apply to a broad range of EU exports to the United States, including automobiles, semiconductors, and pharmaceutical products. This replaces the previous structure, which had lower average tariffs but included significantly higher duties—up to 25%—on certain auto products.
However, the new tariff rate does not apply to steel and aluminum, which remain subject to a higher 50% duty.
Additionally, the European Union has agreed to purchase $750 billion worth of U.S. energy products, including liquefied natural gas (LNG), oil, and nuclear fuel. An additional $600 billion in further investments is also part of the deal.
“These purchases will diversify our energy sources and help replace Russian gas and oil,” von der Leyen said, highlighting the geopolitical and economic implications of the agreement for Europe’s energy security.
While most goods will fall under the new tariff regime, both sides have agreed to zero tariffs on certain strategic products. These include aircraft and aircraft parts, specific chemicals, and some agricultural goods. Notably, the agreement does not address tariffs on spirits, which remain under discussion.
The 15% tariff aligns with the rate the U.S. agreed upon with Japan earlier in the week, marking a broader shift in U.S. trade policy under the Trump administration.
Trump had previously warned of a 30% blanket tariff on all EU imports if no deal was reached by July 12. Sunday’s agreement averts that threat and introduces a new phase of cooperation.
The deal still requires ratification by all 27 EU member states before implementation.
This development comes after months of trade tensions between Washington and Brussels, with both sides accusing the other of protectionist practices. President Trump had criticized the EU for being “very closed,” particularly regarding American agricultural and automotive exports.
For von der Leyen, reaching the agreement before the August 1 deadline was a priority. The outcome is expected to ease transatlantic tensions and provide a framework for further economic integration between the two largest economies in the world.
