Trump and EU reach trade deal ahead of looming deadline

Yahoo

2 days ago

President Donald Trump announced July 27 the United States had reached a trade deal with the European Union, days ahead of a self-imposed Aug. 1 deadline.
Trump met with the European Commission's president, Ursula von der Leyen, during his trip to Scotland over the weekend, where the pair discussed terms and came to an agreement.
The deal includes a 15% tariff on most European exports to the United States, similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but a reduction from the 30% Trump threatened to impose earlier in July.
The agreement also includes $600 billion in EU investments in the U.S., and the purchase of $750 billion worth of U.S. energy.
"I think we both wanted to make a deal,' Trump said. "I think it's going to be great for both.'
The 15% tariff will be applied 'across the board,' for items including cars, but steel and aluminum will remain at 50%.
"We have a trade deal between the two largest economies in the world, and it's a big deal,' von der Leyen said. 'It's a huge deal. It will bring stability. It will bring predictability.'
The president has repeatedly criticized the European Union, saying it was "formed to screw the United States" on trade. The U.S. trade deficit with the EU reached $235 billion in 2024, according to U.S. Census Bureau data.
Heading into the weekend meeting, he called the relationship between the EU and the United States "very unfair" and said he thought officials had a "50/50 chance" of striking a deal.
After an agreement was announced, von der Leyen said the deal would "rebalance" relations, despite European leaders long claiming there was not an unfair trade balance.
German Chancellor Friedrich Merz said the agreement averted a trade conflict that threatened a 27.5% tariff on cars.
"This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,' Merz said.
Italy's Prime Minister Giorgia Meloni called it a 'positive' trade deal.
Ireland's Trade Minister Simon Harris said the tariff provides certainty in trade that 'is essential for jobs, growth and investment.'
"A deal provides a measure of much needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world,' Harris said.
Trump is seeking to reorder the global economy and reduce decades-old U.S. trade deficits. He has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." The EU deal echoes the deal reached with Japan.
Despite the recent deals, Commerce Secretary Howard Lutnick said the administration will continue to pursue aggressive tariffs around the world, including potential duties on critical semiconductors in the near future.
Contributing: USA TODAY, Reuters
This article originally appeared on USA TODAY: Trump and EU reach trade deal with 15% US tariffs
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