US and EU Reach Major Trade Deal with 15% Tariff Agreement

• Jul 28, 2025

The United States and the European Union have reached a major trade agreement, ending months of tense negotiations between two of the world’s largest economic powers.

The deal was finalized after a critical meeting in Scotland between US President Donald Trump and European Commission President Ursula von der Leyen. Under the new agreement, the US will impose a 15% tariff on all EU goods — half the 30% Trump had originally threatened to implement. In return, the EU will reduce tariffs to zero on selected American exports.

The agreement brings relief to both sides, which together account for nearly one-third of global trade. Von der Leyen called the deal a step toward stability, while Trump described it as “a good deal for everybody” after their private talks at his Turnberry golf resort in South Ayrshire.

Trump said the EU also agreed to increase investment in the US by $600 billion over the next three years. This includes significant spending on American military equipment and $750 billion on energy imports such as liquified natural gas, oil, and nuclear fuels—moves von der Leyen said would help Europe reduce dependence on Russian energy sources.

The deal includes tariff exemptions for certain products, such as aircraft and their parts, selected chemicals, and some agricultural goods. However, Trump confirmed that the 50% tariff on steel and aluminum imports would remain.

Von der Leyen praised Trump for his role in reaching the agreement, calling him a “tough negotiator” but also “a dealmaker.” She emphasized that the EU’s aim was to rebalance the trading relationship, which Trump has often criticized due to the US importing more goods from the EU than it exports.

In 2024, US-EU trade in goods totaled around $976 billion, with the US importing $606 billion and exporting $370 billion—creating a trade deficit Trump views as unfavorable. The new tariffs are expected to generate about $90 billion in revenue for the US government.

While EU leaders welcomed the deal, some expressed concerns. Irish Prime Minister Micheál Martin warned that higher tariffs would still make trade more difficult. Germany’s Chancellor Friedrich Merz said the agreement avoids a damaging trade war, and Italy’s Prime Minister Giorgia Meloni said she would wait to review the details.

Although not as favorable as the UK’s 10% tariff rate, the EU’s 15% rate matches the deal Japan secured the previous week. Trump, currently on a five-day visit to Scotland, plans to meet UK Prime Minister Keir Starmer on Monday and will visit Aberdeen on Tuesday to open a new golf course with his sons.