Topline
The U.S. has agreed to a trade deal with the European Union, President Donald Trump and European Commission President Ursula von der Leyen announced Sunday afternoon, agreeing to a 15% tariff rate on most exports, including European cars, from EU countries—just days before the Aug. 1 deadline set for Trump’s “reciprocal” tariffs.
US President Donald Trump meets with European Commission President Ursula von der Leyen in Scotland … More
Key Facts
Both Trump and von der Leyen said the tariffs would be applied “across the board,” but Trump later confirmed they would not apply to several major sectors the administration is planning specific tariffs for, including European pharmaceuticals, steel and aluminum.
Trump said the EU agreed to purchase $750 billion in energy, purchase an undetermined amount of military equipment, invest a further $600 billion in the United States and open the European economy to American goods at 0% tariffs.
This is a breaking story and will be updated.
Crucial Quote
“It will bring stability. It will bring predictability. That’s very important for businesses on both sides of the Atlantic,” von der Leyen said. “Basically, the European market is open. It’s 450 million people.”
Big Number
$235.6 billion. That was the United States’ trade deficit with the EU in 2024, according to the U.S. Trade Representative. Trump made reducing trade deficits between major trading partners like the EU a key plank in his economic policy, and on Sunday von der Leyen seemed on the same page. “We wanted to rebalance the trade relation and we wanted to do it in a way that trade goes on between the two of us across the Atlantic because the two biggest economies should have a good trade flow between us, and I think we hit exactly the point we wanted to find,” the European Commission president said. “Rebalance, but enable trade on both sides, which means good jobs on both sides of the Atlantic, means prosperity on both sides of the Atlantic, and that was important for us.”
What Goods Were Not Covered In The Deal?
Trump said pharmaceutical imports were “unrelated” to the deal reached Sunday. “Steel is staying the way it is,” Trump also added. “Steel and aluminum. That’s a worldwide thing that stays the way it is.” Commerce Secretary Howard Lutnick also said the administration would soon announce a new plan for chip manufacturing, likely in the next two weeks.
Source: https://www.forbes.com/sites/zacharyfolk/2025/07/27/us-and-european-union-agree-on-trade-deal-setting-tariffs-at-15/