Trump and EU Seal Trade Deal with 15% Tariff on European Imports

 

In a major development for transatlantic trade, U.S. President Donald Trump announced on Sunday that the United States and the European Union have reached a framework trade agreement that imposes a blanket 15% tariff on all EU goods entering the U.S.. The deal was finalized during talks with European Commission President Ursula von der Leyen at Trump’s Turnberry golf course in Scotland.

The agreement averts a looming trade conflict, as Trump had previously threatened to hike tariffs to 30% if a deal wasn’t reached by August 1. While the 15% rate is higher than the EU’s preferred zero-tariff arrangement, it is seen as a compromise compared to the harsher alternatives.

In exchange, the EU will make significant purchases of U.S. energy and military equipment, and invest approximately $600 billion in the American economy. Trump emphasized the deal’s importance in rebalancing trade and reducing the U.S. merchandise trade deficit with the EU, which reached $235 billion in 2024.

Von der Leyen called the agreement “predictable and stabilizing,” noting its significance for businesses on both sides of the Atlantic. However, critics in Europe argue that the blanket tariff could strain key industries, including automotive and pharmaceuticals.

The deal mirrors similar recent agreements Trump has struck with Japan and other nations, as part of his broader effort to reshape global trade dynamics.