US and EU Strike ‘Biggest-Ever’ Trade Deal, Averting Tariff War
The United States and the European Union announced a landmark trade agreement on Sunday, establishing a 15% tariff on most European goods exported to the US and averting a looming trade war . The deal was finalized during a meeting between US President Donald Trump and European Commission President Ursula von der Leyen at Trump’s golf resort in Scotland, just days before an August 1 deadline that could have seen across-the-board US tariffs of 30% on European products .
Hailing the pact as possibly the “biggest deal ever reached,” Trump said the 15% tariff would apply to most EU goods, including critical sectors like automobiles, pharmaceuticals, and semiconductors . In return, the EU has committed to purchasing $750 billion worth of American energy—including liquefied natural gas, oil, and nuclear fuel—and investing an additional $600 billion in the United States .
The agreement brings a sense of relief and predictability to a trade relationship worth $1.9 trillion annually in goods and services . “It’s a good deal. It will bring stability. It will bring predictability,” von der Leyen told reporters, describing Trump as a tough negotiator and stating the deal was “the best we could achieve” .
The EU had been working to avoid a steep increase in tariffs threatened by the Trump administration . The 27-nation bloc currently faces a range of US tariffs, including a 25% tax on cars and 50% on steel and aluminum . The new 15% base tariff, while higher than what European leaders had hoped for, prevents the threatened 30% rate and aligns with a similar deal struck recently with Japan .
While the 15% tariff is broad, von der Leyen noted that both sides agreed to remove tariffs on several key products, such as aircraft, some chemicals, and certain farm goods . She expressed hope that “zero-for-zero” agreements on other items, like alcohol, could be sorted out in the future .
The deal follows months of tense negotiations and provides clarity for European companies, particularly in the auto industry, which had been struggling under existing tariffs
