MercoPress. South Atlantic News Agency

US and EU clinch trade agreement

“I think we both wanted to reach an agreement,” Trump said after meeting with von der Leyen

The United States and the European Union have reached a trade agreement that will impose a 15% tariff on most European exports to the US, including automobiles, President Donald Trump announced Sunday after meeting with European Commission President Ursula von der Leyen at the former's golf resort in Turnberry, Scotland.

The agreement aims to avert a potential trade war, as the US had threatened to impose tariffs as high as 30% by August 1 if no deal was reached.

The US will apply a fixed 15% tariff on the majority of EU imports, a significant reduction from the 30% tariffs previously threatened. The EU will also apply zero tariffs on certain strategic US imports, though specific details on this are still being ironed out. Pharmaceuticals are explicitly excluded from this tariff negotiation.

According to Trump, the EU has committed to purchasing US$750 billion worth of US energy over the next three years to reduce reliance on Russian natural gas, investing an additional US$600 billion in the United States, and making a major purchase of US military equipment.

Both leaders expressed satisfaction with the agreement, stating it will bring stability and predictability to transatlantic trade, which boasts the world's largest trade volume. The agreement was described as “a good deal for everybody” and “a giant deal.”

While a broad framework has been established, both sides acknowledge that further details need to be finalized in the coming weeks. The European Commission must present the deal to its member states and EU lawmakers for final approval.

This agreement follows similar trade deals the US recently made with other nations, including Japan and the United Kingdom. President Trump is also scheduled to meet with British Prime Minister Keir Starmer on Monday to discuss a bilateral tariff agreement, as well as the ongoing conflicts in Ukraine and Gaza.