Washington imposes a 15% tariff on most EU goods, but both sides call the deal a breakthrough.
The United States and the European Union have reached a framework trade agreement that provides for a 15% US import tariff on most European goods. According to Reuters, the parties avoided an escalation of the trade conflict, which could have escalated into a full-fledged economic war between the allies, which together account for almost a third of world trade.
The breakthrough in the negotiations was announced after European Commission President Ursula von der Leyen met with U.S. President Donald Trump at his golf resort in western Scotland.
“This is the greatest deal in history,” Trump told reporters after hours of negotiations. At the same time, von der Leyen confirmed that the 15 percent tariff would be “one size fits all” for goods.
The agreement also includes promises of $600 billion in EU investment in the US economy, as well as significant purchases of US energy and military equipment by European countries.
Although the agreement is seen by many in Europe as a compromise – the original goal was zero tariffs on both sides – it is considered a much better alternative to the threatened 30 percent tariff.
“We agreed on a single tariff of 15% on cars and everything else,” Trump said. At the same time, it was noted that an increased tariff of 50% will continue to apply to steel and aluminum.
The US President continues to implement his strategy of global trade reshaping. So far, his administration has reached agreements with the United Kingdom, Japan, Indonesia, and Vietnam, although it has not yet realized the promised “90 deals in 90 days.”
Trump has repeatedly criticized the EU, saying it was created to “put economic pressure on the United States.” In 2024, the trade deficit between the US and the EU reached $235 billion. The Europeans, in turn, point to a surplus in the services sector, which they believe will compensate for this gap.
Earlier, on July 12, Trump threatened to impose a 30% tariff on European goods on August 1 if no agreement is reached. In response, the EU prepared countermeasures worth 93 billion euros, and some member states demanded the activation of anti-coercive instruments against American services.
The agreement was the result of long and difficult negotiations that seem to have stopped the escalation and brought relief to European businesses.