U.S. President Donald Trump declared on Sunday that the United States had reached a trade agreement with the European Union, establishing a 15% tariff on EU imports.
“We have reached a deal. It’s a good deal for everybody,” said Trump.
The deal brings an end to months of uncertainty in the economic relationship between the U.S. and its largest trading partner EU.
European Commission President Ursula von der Leyen also praised the agreement, calling it a ‘good deal’ for both sides.
The newly revealed tariff rate reflects a decrease from the 30% tariff Trump signaled on July 12 and the 20% he indicated on April 2. During the declaration, Trump confirmed that the European Union would not levy tariffs on American imports, adding that the agreement is mutually satisfactory.
In addition, Trump stated that the 50% tariffs on steel would remain unchanged and hinted at the possibility of further tariffs on pharmaceutical imports, a sector in which Ireland is a major supplier. He also revealed that the European Union had pledged to invest an additional $600 billion in the United States and agreed to purchase $750 billion worth of energy.
Furthermore, he also noted that the EU will purchase “a vast amount of military equipment,” though the exact value of the purchase has yet to be determined.
During a press briefing following Ursula von der Leyen’s meeting with Trump, she clarified that the 15% tariff would not be added on top of existing tariffs. She emphasized that both the U.S. and the EU had agreed to eliminate tariffs on several categories of imports, including all aircraft and components, select chemicals, generic pharmaceuticals, semiconductor equipment, and certain agricultural products.
“We will replace Russian gas and oil with significant purchases of U.S. [liquified natural gas], oil, and nuclear fuels,” she added.
Trump claimed the new deal would unlock access to European markets, which he described as previously closed off. The European Union already purchases a substantial amount of American goods each year, with the total reaching nearly $400 billion in 2024.
The deal comes after Ursula von der Leyen visited Trump at his golf resort in western Scotland, where they held crucial talks to secure the long-negotiated pact.
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