The trade deal reflects the arrangements Trump reached with Japan.
Trump, European Union comes to trade contracts, 15% tariff
President Donald Trump announced that the United States had reached a trade agreement with the European Union a few days before its August 1 deadline.
- Trump will reach a trade agreement with the European Union with a 15% tariff on imports.
- The deal also calls for the EU to purchase $750 billion in energy and invest $600 billion in energy and military equipment.
President Donald Trump announced on July 27 that the US had reached a trade agreement with the European Union a few days before its self-imposed August 1 deadline.
Trump met with European Commission President Ursula von der Leyen during a trip to Scotland over the weekend, and the pair discussed terms and reached an agreement.
The deal, like recent agreements between Trump and other major trading partners, including Japan, include a 15% tariff on most European exports to the United States. The collection is higher than the 10% that Europeans are seeking, but the decline from 30% Trump threatened to be imposed in early July.
The deal also includes purchasing US energy worth $600 billion, with EU investments in the US and $750 billion worth of US energy.
“I think we both wanted to do business,” Trump said. “I think it’s great for both of you.”
The 15% tariff applies “fully” to items including cars, but steel and aluminum remain at 50%.
“We have a trade agreement between the two biggest economies in the world, and that’s a big deal,” von der Reyen said. “That’s a big deal. It brings stability. It brings predictability.”
The president repeatedly criticized the European Union, saying it was “formed to screw the United States” through trade. The US trade deficit with the EU reached $235 billion in 2024, according to data from the US Census Bureau.
Heading for the weekend meeting, he called EU-US relations “very unfair” and said he thought there was a “50/50 chance” for officials to make a deal.
After the contract was announced, von der Leyen said the deal would be a “rebalance” relationship despite European leaders’ long claims that there was no unfair trade balance.
German Prime Minister Friedrich Merz said the agreement avoided a trade dispute that threatened the 27.5% tariff on cars.
“The agreement succeeded in avoiding a trade dispute that would seriously damage the export-oriented German economy,” Merz said.
Italian Prime Minister Giorgia Meloni called it a “positive” trade deal.
Ireland’s Minister of Trade Simon Harris said the tariffs provide trade certainty “which is essential for work, growth and investment.”
“The transaction provides a much-needed measure of certainty for Irish, European and American companies representing the world’s most integrated trading relationships,” Harris said.
Trump aims to rearrange the global economy and reduce the US trade deficit decades ago. He has so far sparked agreements with the UK, Japan, Indonesia and Vietnam, but his administration has not fulfilled its promise of “90 deals in 90 days.” EU transactions reflect transactions reached with Japan.
Despite recent deals, Commerce Secretary Howard Lutnick said the administration will continue to pursue aggressive tariffs around the world, including potential obligations on key semiconductors in the near future.
Contributions: USA Today, Reuters
