The United States and European Union have reached a framework trade deal that sets a 15% tariff on most EU goods entering the U.S., announced on July 27, 2025, following talks between President Donald Trump and European Commission President Ursula von der Leyen.
Key Highlights:
- 15% baseline tariff replaces the previously threatened 30% rate
- Applies to major sectors: automobiles, semiconductors, pharmaceuticals
- EU commits to:
- $750 billion in U.S. energy purchases
- $600 billion in additional U.S. investments
- Select goods (e.g. aircraft, chemicals, agricultural products) may receive zero-tariff treatment
- Steel and aluminum remain subject to 50% tariffs
- EU member states must still approve the deal; technical details to follow
Both sides hailed the agreement as a stabilizing move for transatlantic trade, which accounts for nearly 44% of global GDP.
Source
- Politico
- Statement by President von der Leyen on the deal on tariffs and trade with the United States
Fact Sheet: The United States and European Union Reach Massive Trade Deal
- Major Trade Agreement Announcement: On July 29, 2025, President Trump announced a landmark trade deal with the European Union (EU), which includes a 15% tariff rate on imports from the EU, while providing American businesses unprecedented access to European markets, particularly in the agricultural and manufacturing sectors.
- Investment and Economic Impact: The deal is expected to bolster the U.S. economy significantly, with the EU committing to purchase $750 billion in U.S. energy and invest $600 billion in the U.S. by 2028, while also eliminating significant tariffs on U.S. industrial goods to enhance market competitiveness.
- Focus on Fair Trade Practices: The agreement aims to address unfair trade practices and non-tariff barriers, ensuring that U.S. farmers, manufacturers, and service providers benefit from reciprocal access to the EU market, ultimately aiming to reduce the U.S. goods trade deficit and strengthen economic ties between the two regions.
Source whitehouse.gov
