US, EU Strike Landmark Trade Deal Setting Tariffs at 15%
The United States and the European Union have reached a sweeping trade agreement that sets a unified tariff rate of 15% on most goods exchanged between the two economic powers.
The announcement came just days before a looming deadline set by U.S. President Donald Trump, who had threatened to double tariffs on EU imports if a deal was not secured.
The agreement, first reported by Politico, covers a wide range of goods, including automotive imports and industrial products. However, pharmaceutical products are notably exempt from the new tariff regime.
'This is a tremendous deal for both the United States and the European Union,' President Trump told reporters following a high-level meeting with European Commission President Ursula von der Leyen in Scotland. 'We've leveled the playing field, and we're entering a new era of fair and reciprocal trade.'
As part of the accord, the EU has pledged to purchase $750 billion worth of American energy exports over the coming years, a move seen as a strategic effort to reduce reliance on Russian energy sources. The deal also includes a European commitment to increase military equipment investment by an additional $600 billion, compared to previous defense spending plans.
In return, U.S. markets will maintain access to European goods under the agreed 15% tariff rate, while the EU has agreed to open its markets to U.S. products without any additional customs duties, marking a significant shift in European trade policy.
Experts say the agreement signals a recalibration of U.S.–EU relations after years of friction over tariffs, digital taxes, and industrial subsidies. It also reflects a shared interest in strengthening economic ties amid growing global uncertainty and rising competition from China.
'This is not just about trade. It's about geopolitical alignment,' said Dr. Lisa Reinhardt, a trade analyst at the Atlantic Policy Institute. 'Energy, defense, and market access, this agreement touches every pillar of the transatlantic alliance.'
While the details of the agreement will require ratification on both sides of the Atlantic, early market reactions have been positive. European auto stocks rose sharply following the news, and energy sector shares in the U.S. also posted gains.
The deal is expected to go into effect later this year, pending legislative approvals.
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