The US president and his EU counterpart strikes wiped out 15% tariff transactions to stabilize transatlantic trade.
The US and the European Union have reached a drastic trade agreement, setting 15% tariffs on most goods and avoiding the transatlantic trade war that could rattle global markets.
The announcement came after a private meeting between President Donald Trump and President Ursula von del Reyen on Sunday at Trump’s Turnberry Golf Resort in Scotland.
The transaction comes just days before Washington is expected to impose a 30% tariff on EU imports.
“It was a very interesting negotiation. I think it’s great for both parties,” Trump told reporters. He added that it is “a huge deal with many countries for everyone.”
Von Der Leyen welcomed the deal, saying, “It brings stability. It brings very important predictability for our business on both sides of the Atlantic.”
Trump claimed that the EU had purchased about $7500 billion worth of US energy, increased its investment in the US another $600 million, and committed to ordering large quantities of military equipment. Both leaders confirmed that the agreed 15% tariff rate applies widely to automobiles and other goods.
“We are open to all of the European countries,” Trump said. Von Der Leyen repeated, noting that the 15% rate was “all-over-comprehensive,” and that the European market is virtually open.
The talks followed months of tensions before and after Trump, which has long denounced the EU for unfair trade practices. Just before negotiations began, he called the existing arrangement “a very one-sided deal, very unfair to the US.”
Von Der Leyen pointed to the combined economic power of the two powers, explaining that their trade volume covers the world’s largest “normal and hundreds of millions of dollars.”
She acknowledged Trump’s “stricken” reputation as a negotiator, and he replied: “But fair.”
Trade disputes have been averted
Earlier this month, negotiations appeared near collapse when Trump threatened to advance 30% tariffs, unless the EU had recently attacked Japan. When asked if he would accept something lower, Trump said “No.”
If an agreement had not been reached, Brussels had prepared a long list of retaliatory tariffs targeting everything from beef and beer to Boeing aircraft and car parts.
German Prime Minister Friedrich Merz said US-EU deals are a positive move that will help to avoid a trade war and avoid a serious blow to the automobile sector.
“The agreement succeeded in avoiding a trade dispute that would seriously damage the export-oriented German economy,” he said in a statement. “This applies especially to the automotive industry, where the current 27.5% tariffs are almost half of 15%.”
Italian Prime Minister Giorgia Meloni said it was “positive” to reach a trade deal. However, she needs to see details, Italian news agency ANSA reported.
Trump and British Prime Minister Kier Starmer are expected to meet on Monday, and trade is also on sale on the agenda. Another US-UK trade framework was announced in May, but Trump acknowledges that some elements remain unfinished, but claims that a broader agreement has already been concluded.
Trump will travel to Aberdeen on Tuesday to help open a third golf course under his last name. He and his sons are expected to cut the ribbon themselves.
