US President Donald Trump announces EU trade deal with 15 per cent tariffs

West Australian

14 hours ago

President Donald Trump announced Sunday that the US reached a trade deal with the European Union, following pivotal discussions with European Commission President Ursula von der Leyen days before the August 1 tariff deadline.
Mr Trump said that the deal imposes a 15 per cent tariff on most European goods to the US, including cars.
Some products, including aircrafts and their components, some chemicals and pharmaceuticals, will not be subject to tariffs, Ms von der Leyen said in a briefing after the agreement was announced.
She also said that the new 15 per cent tariff rate would not be added to any tariffs already in effect.
The 15 per cent tariff rate is lower than the 30 per cent rate Mr Trump had previously threatened against the United States' largest trading partner, but higher than the 10% baseline tariffs the EU was hoping for.
Mr Trump said that the 27-member bloc also agreed to purchase $750 billion ($1.1 trillion) worth of US energy and invest an additional $600 billion worth of investments into the US above current levels.
He said that the bloc would also be 'purchasing hundreds of billions of dollars worth of military equipment,' but did not provide a specific dollar amount.
'It's a very powerful deal, it's a very big deal, it's the biggest of all the deals,' Mr Trump said Sunday alongside Ms von der Leyen.
'It's a good deal, it's a huge deal, with tough negotiations,' Ms von der Leyen said after the meeting.
While questions remain about the specific details and timeline of the EU investments, the agreement marks a pivotal moment for Mr Trump, following weeks of uncertainty surrounding the US-EU trade talks.
Mr Trump during a press conference before his meeting with the European leader said that there was a 50-50 chance they would reach a framework of a deal.
Brussels had been preparing for a no-deal scenario if the trade talks devolved ahead of August 1.
Lawmakers had approved a major package of counter-tariffs, which would have targeted a range of US goods. The bloc also considered deploying the EU's 'Anti-Coercion Instrument,' a move seen as the trading bloc's 'trade bazooka.'
Ireland's Prime Minister said the agreement 'brings clarity and predictability to the trading relationship between the EU and the US,' according to a statement.
'It does mean that there will now be higher tariffs than there have been and this will have an impact on trade between the EU and the US, making it more expensive and more challenging,' Ireland's Department of the Taoiseach said.
Still, the agreement 'creates a new era of stability,' the statement continued.
The US-EU trade relationship was valued at 1.68 trillion euros when taking into account both services and goods trading in 2024, according to the European Council.
While the EU recorded a surplus on goods trading, it noted a deficit in the services realm. This left the EU with an overall trade surplus of around 50 billion euros with the US last year.