Trump announces EU trade deal with 15% tariffs
U.S. President Donald Trump shakes hands with European Commission President Ursula von der Leyen, after the announcement of a trade deal between the U.S. and EU, in Turnberry, Scotland, on July 27, 2025.
Evelyn Hockstein | Reuters
President Donald Trump announced Sunday that the U.S. reached a trade deal with the European Union, following a pivotal discussion with European Commission President Ursula von der Leyen days before the Aug. 1 tariff deadline.
Trump said that the deal imposes a 15% tariff on most European goods to the U.S., which is lower than the 30% rate he had previously threatened against the United States’ largest trading partner.
Trump also said that the 27-member bloc has agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion worth of investments into the U.S. above current levels.
He o 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,” Trump said alongside von der Leyen.
“It’s a good deal, it’s a huge deal, with tough negotiations,” von der Leyen said after the meeting.
The announcement comes after 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, following weeks of painstaking negotiations.
The Sunday announcement marks a pivotal moment for Trump, following weeks of uncertainty surrounding the U.S.-EU trade talks.
Brussels had been preparing for a no-deal scenario if the trade talks devolved ahead of Aug. 1.
Lawmakers had approved a major package of counter-tariffs, which would have targeted a range of U.S. goods. The bloc also considered deploying the EU’s “Anti-Coercion Instrument,” a move seen as the trading bloc’s “trade bazooka.”
The U.S.-EU trade relationship was valued at 1.68 trillion euros ($1.97 trillion) 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 U.S. last year.
This is a breaking news story, please check back for updates.
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