The United States and the European Union have reached a new trade agreement, just days before harsh tariffs were set to take effect. The deal was announced after a private meeting in Scotland between US President Donald Trump and European Commission President Ursula von der Leyen.
Key Points of the Agreement:
A 15% tariff will now apply to most EU goods entering the US.
This replaces a planned 30% tariff that was due to start on August 1.
Some sensitive products—including airplane parts, semiconductor equipment, certain chemicals, and select farm goods—are exempt.
European carmakers, previously facing up to 27.5% in duties, will now only pay 15%.
President Trump called it the “biggest deal ever made,” saying it would benefit both sides. Von der Leyen welcomed the deal as a step toward “stability and predictability” for businesses in both Europe and America.
As part of the agreement:
The EU has pledged to purchase \$750 billion worth of US energy products.
European firms will invest an additional \$600 billion in the US economy.
A major deal to buy US military equipment is also included.
Trump said, “We’re opening up all of Europe. It’s a tremendous win.”
While both leaders celebrated the deal, experts and some lawmakers pointed out the lack of specifics. Economists say many questions remain unanswered.
Carsten Brzeski, a leading analyst from ING Research, warned, “There is nothing on paper yet. It’s too early to celebrate.”
European reaction was mixed. German Chancellor Friedrich Merz praised the agreement, saying it saved Germany’s export-heavy economy—especially the auto sector—from heavy losses.
Italy’s Prime Minister Giorgia Meloni called it “positive” but said she needed to see the fine print.
Others were less optimistic. Danish MP Rasmus Jarlov said on social media, “Everything will become more expensive. We’ll all be worse off. This is economic madness.”
The trade dispute between Washington and Brussels had escalated for months. Trump accused the EU of unfair practices and threatened heavy tariffs if the EU didn’t agree to terms similar to those recently signed with Japan.
The EU prepared a long list of retaliatory tariffs in case talks failed, including potential duties on beef, beer, airplane parts, and car components.
With this agreement, those threats are off the table—for now.
Trump will meet UK Prime Minister Keir Starmer on Monday to discuss a separate trade deal. On Tuesday, he will open a new golf course in Aberdeen, Scotland, before returning to Washington.
While the EU-US deal marks a major breakthrough, experts say future negotiations will be crucial to define how the agreement works in practice.
