EU and US agree trade deal, with 15% tariffs for European exports to America
Summary
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The United States and European Union have reached a trade deal which will see a blanket tariff of 15% on all EU goods imported to the US
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President Trump says the EU has promised hundreds of billions of dollars of investment and energy purchases
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Trump and President of the European Commission Ursula von der Leyen met for talks in Scotland on Sunday – she has called the agreement a “huge deal”
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The new deal is set to kick in on Friday, and means the Europe will avoid threatened import charges of 30%
Live Reporting
Edited by Jake Lapham and Jamie Whitehead
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US to replace Russia as European energy suppliers, EU chief sayspublished at 20:41 British Summer Time
Image source, ReutersMore from Ursula von der Leyen who also says the European Union will increase cooperation with the United States by buying American energy products.
“We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels,” the European Commission President says in a statement.
“Today’s deal creates certainty in uncertain times. It delivers stability and predictability, for citizens and businesses on both sides of the Atlantic.
“This is a deal between the two largest economies in the world.”
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The devil will be in the detailpublished at 20:33 British Summer Time
Arunoday Mukharji
North America correspondentThis deal is being sold as a landmark moment in relations between the US and the EU. This was one negotiation the two would not have wished to see go beyond the 1 August deadline. And it has not been easy getting to this point.
Washington and the 27-nation bloc have both played hardball and neither was ready to give in easily which is why talks went down to the wire.
A lot of big numbers have been thrown around in terms of how much the EU will invest in the US, but the devil will be in the detail. Questions like exactly when those investments will be made, and in what areas, are for now, unanswered.
The business impact of the agreement will be judged in the weeks and months ahead and as the new agreement takes shape but for now, both sides are championing this as a win.
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15% tariff will be a ‘challenge’, but opens up new markets, EU chief sayspublished at 20:24 British Summer Time
European Commission President Ursula von der Leyen has just been speaking to reporters about the trade deal.
“On the first of August, we would have been at 30%, and it would have been much more difficult to get down to 15%,” she says.
The 15% tariff will be a “challenge”, the EU chief says, but the deal “gives us access to the American markets”.
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Deal shows how serious Trump is about renegotiating how the US does businesspublished at 20:11 British Summer Time
Jonathan Josephs
Business reporterThis deal shows how serious President Trump is aboutrenegotiating how the US, the world’s biggest economy, does business witheveryone else.
Given the EU consists of 27 very different countries it hasseemed one of the trickier trade deals to pull off but its happened just beforethe 1 August deadline.
It comes days after another major agreement was struck withJapan – there have also been deals with the UK, Vietnam and Indonesia.
The other big ones still on the table are with the threebiggest US trade partners – Mexico, Canada and China.
But if the US president is in a deal making mood, then therecould be more positive news for the global economy over the next 48 hours interms of uncertainty being settled.
The US and China are holding their next trade talks inStockholm tomorrow and Tuesday and there is some expectation that highertariffs could be suspended for another 90 days.
A few days ago Trump said the US was “getting along withChina very well” and implied that the major sticking point of rare earth metalsexports had been overcome.
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Watch: I think it’s the biggest deal ever made – Trumppublished at 19:58 British Summer Time
Donald Trump and Ursula von der Leyen spoke to reporters to announce the deal, with the US president saying he thinks its”the biggest deal ever made”.
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Italian PM Meloni says EU-US deal is a positive steppublished at 19:36 British Summer Time
Image source, Getty ImagesItalian Prime Minister Giorgia Meloni says it’s positive that the EU has reached a deal with the US, but needs to see the details, Italy’s Ansa news agency reports.
Italy is the EU’s third largest economy.
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‘Biggest deal ever made’ includes US energy purchases, Trump sayspublished at 19:22 British Summer Time
Image source, ReutersWe can bring you some more details now about what we know about the trade deal. Trump said the EU will purchase $750bn (£558bn, €638bn) in US energy, in additional to increasing overall investment in the US by $600bn (£446bn, €510bn).
The US president hailed the agreement as the “biggest deal ever made” and adds that Washington is eyeing up agreements with “three to four other countries”.
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Both Trump and Von der Leyen can paint this as something of a victorypublished at 19:12 British Summer Time
Jonathan Josephs
Business reporterAfter weeks of tense negotiations between their top tradeofficials, the EU and US have finally struck a deal.
Ultimately it has taken their leaders to sit down face toface to get an agreement.
That’s something we’ve also seen with the other deals thatPresident Trump has struck, his personal involvement is what has got them overthe line – even when it looked like a deal might not happen.
That it has matters to both sides because so many businessesand jobs depend on what the EU calls “the world’s largest bilateral trade andinvestment relationship”.
Both President Trump and European Commission PresidentUrsula von der Leyen can paint this as something of a victory.
For the EU, the tariffs could have been worse at 15%, ratherthan the 30% that had been threatened – although it’s not as good as the UK’s10% rate.
For the US that equates to the expectation of roughly $90bnof tariff money coming into government coffers – based on last year’s tradefigures, plus there’s $600bn of investment now due to come into the country.
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Deal will be ‘great for cars’, agriculture, Trump sayspublished at 18:58 British Summer Time
In remarks to reporters, Trump said the deal will be “great for cars”, and will have a big impact on agriculture.
He added that he is “looking at three or four other countries” to strike deals with as well, but that they will most likely include some form of tariffs.
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Deal sets US tariff rate at 15% on EU goodspublished at 18:49 British Summer Time
The President of the European Commission, Ursula von der Leyen, confirmed there would be US tariffs on goods from Europe of 15% across the board.
Washington had earlier threatened a tariff rate of 30%.
The agreement also includes promises of billions of dollars worth of investment and energy purchases from Brussels.
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‘It’s a good deal for everybody’, Trump sayspublished at 18:44 British Summer Time
Image source, ReutersPresident Trump announced the deal when speaking to reporters at his golf resort in Turnberry, Scotland, just after he came out of a brief meeting with Ursula von der Leyen.
“We have reached a deal. It’s a good deal for everybody,” Trump said.
“It’s going to bring us closer together… it’s a partnership in a sense,” he added.
EU chief Ursula von der Leyen also hailed it as a “huge deal”, which came after “tough negotiations”.
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US-EU strike trade dealpublished at 18:37 British Summer Time
Breaking
US President Donald Trump has struck a trade deal with theEuropean Union following meetings with the President of the European CommissionUrsula von der Leyen.
Stay with us as we bring you the details.
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Why are the US-EU trade ties so important?published at 18:23 British Summer Time
Goods and services exchanged between the United States andEuropean Union forms one of the world’s largest trade relationships. They areeach other’s largest trade and investment partners.
Total trade in goods between the EU and US totalled anestimated $975.9bn (£751.4bn) in 2024. Together, they account for almost athird of global trade in goods and services.
Last year the US imported about $606bn (£451bn) in goodsfrom the EU and exported around $370bn (£276bn).
That imbalance, or trade deficit, is a sticking point forDonald Trump. He says trade relationships like this mean the US is”losing”.
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Trump and EU chief enter crunch meetingpublished at 18:12 British Summer Time
Thomas Mackintosh
Live reporter
Image source, Getty ImagesWelcome to our live coverage of crunch trade talks between the United States and European Union.
“It is a beautiful Sunday in Scotland,” Donald Trump said as he started a wide-ranging news conference inside the ballroom of his Turnberry golf resort in Scotland.
Against the backdrop of the green fairways and bunkers, Trump sat next to European Commission President Ursula von der Leyen and said he “was not in a good mood”.
Although the US president didn’t elaborate on why his spirits were low, he said there was a “50:50” chance the pair would strike a trade deal, explaining “we have three or four sticking points”.
“The EU has to be open to American products,” Trump said at one point, while Von der Leyen added any deal would be about “fairness and rebalancing”.
The pair have now gone into a private meeting. Stay with us as we bring you the latest.
