27.07.2025 18:53
A landmark trade agreement has been reached between the United States and the European Union, as announced jointly by President Donald Trump and European Commission President Ursula von der Leyen on Sunday. This deal, finalized just days before a looming August 1st deadline for reciprocal tariffs imposed by the US, sets a 15% tariff rate on most EU exports to the United States, including automobiles. The agreement averts a potential trade war, offering stability to businesses on both sides of the Atlantic.
While both leaders initially described the tariffs as "across the board," President Trump later clarified that several key sectors, including pharmaceuticals, steel, and aluminum, are excluded from this blanket tariff and will be subject to separate, targeted negotiations. The comprehensive agreement, however, goes beyond simply setting tariff rates. It encompasses substantial commitments from the EU, including the purchase of $750 billion in American energy resources, an unspecified amount of military equipment, and a further $600 billion in investment within the United States. Furthermore, the EU has pledged to significantly open its market to American goods, essentially eliminating tariffs on many products.
President von der Leyen emphasized the deal's significance, highlighting the increased predictability and stability it brings for businesses. She also underscored the size and potential of the European market, boasting access to 450 million consumers. This development is particularly noteworthy given the substantial US trade deficit with the EU—a figure reaching $235.6 billion in 2024, according to the U.S. Trade Representative. Reducing this deficit has been a central tenet of President Trump's economic policy, a goal seemingly shared by President von der Leyen, who expressed a desire to rebalance trade relations while maintaining a robust flow of commerce between the two economic giants.
This rapidly evolving situation is still developing, and further details are expected to emerge.
