Cliff Notes
- The US and EU have finalised a significant trade deal, with President Trump declaring it the “biggest deal ever made,” expected to benefit the automotive and agricultural sectors.
- The agreement includes a 15% tariff on EU goods entering the US, a reduction from the previously threatened 30%, alongside substantial EU investments in the US Economy.
- European Commission chief Ursula von der Leyen stated that the deal will enhance stability and predictability for businesses on both sides of the Atlantic.
US and EU agree trade deal – with bloc facing 15% tariffs on goods into America | World News
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The United States and European Union have reached an agreement on a trade deal, says Donald Trump.
The announcement was made as the US president met European Commission chief Ursula von der Leyen at one of his golf resorts in Scotland.
Speaking after talks in Turnberry, Mr Trump said it was the “biggest deal ever made” and will be “great for cars” as well as having a “big impact” on agriculture.
The US will impose 15% tariffs on EU goods entering America, after Mr Trump had threatened a 30% levy.
He said there will be $600bn of EU investment in the US, the bloc will buy $750bn of US energy and will also purchase American military equipment.
Mr Trump said: “I think it’s great that we made a deal today instead of playing games and maybe not making a deal at all.”
“I think it’s the biggest deal ever made.”
Ms von der Leyen said: “We have a trade deal between the two largest economies in the world and it’s a big deal, it’s a huge deal. It will bring stability, it will bring predictability, that’s very important for our businesses on both sides of the Atlantic.”
She said the agreement would include 15% tariffs “across the board inclusive”, and it would help rebalance trade between the two large trading partners.
Mr Trump had earlier said the main sticking point was “fairness”, citing barriers to US exports of cars and agriculture.
He went into the talks demanding fairer trade with the 27-member bloc and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes.
For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU.
In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods.
Ahead of their meeting on Sunday, Ms von der Leyen described Mr Trump as a “tough negotiator and dealmaker”.
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