Sun, 27 Jul 2025

Sun, 27 Jul 2025 EU and US agree trade deal, with 15% tariffs for European exports to America

US President Donald Trump and EU chief Ursula von der Leyen shake on it after "tough negotiations" in Scotland.
The US and EU have agreed on a trade deal, ending months of negotiations between the two major economic partners. The deal involves a 15% tariff on all EU goods imported into the US, which is half the rate that President Trump had threatened to impose. In return, the EU will open its markets to US exporters with zero tariffs on certain products. The agreement was reached after private talks between Trump and EU Commission President Ursula von der Leyen in Scotland. Trump hailed the deal as a "huge success" for both sides, saying it would bring stability to their trading relationship and boost investment in the US. Under the terms of the deal, the EU will invest $600bn in the US over three years, including American military equipment and energy. The EU will also spend $750bn on liquified natural gas, oil, and nuclear fuels, which is expected to reduce its reliance on Russian power sources. Some goods will not be subject to tariffs, including aircraft parts, certain chemicals, and agricultural products. However, a separate deal on semiconductors has yet to be reached, and the EU has secured exemptions for some key business sectors, such as spirits. While Trump celebrated the agreement as the largest trade deal in history, European leaders were more cautious in their reaction. The Irish Prime Minister noted that tariffs would still be higher than before, making trade "more expensive and more challenging". The UK's Chancellor welcomed the deal, but said it was "unbalanced" and required further technical details to be negotiated. Germany's Chancellor also expressed relief at avoiding a trade conflict, saying stable and predictable trade relations were essential for businesses and consumers. Overall, the agreement marks a significant shift in the US-EU trading relationship, which is expected to have far-reaching implications for both economies.
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