Donald Trump has announced a deal with the European Union to end four months of negotiations, averting a transatlantic trade war. The agreement, reached after a 40-minute meeting at Trump's Turnberry golf resort in Scotland, imposes a 15% baseline tariff on most EU goods exported to the US – half the rate that had been threatened.
European Commission chief Ursula von der Leyen described the deal as “a big deal, a huge deal” that would bring stability and predictability. Under the terms, the EU agreed to spend tens of billions of dollars more on US energy products, including $750bn (£560bn) on oil, gas, nuclear fuel and semi-conductors over three years, and to invest $600bn (£446bn) in the US, including military equipment.
However, the 15% tariff is higher than the pre-Trump average of 4.8%, and a 50% tariff remains on steel exports. Pharmaceuticals are included at the 15% rate, but zero tariffs apply to aircraft, certain chemicals, semiconductor equipment, and some agricultural products. German Chancellor Friedrich Merz welcomed the deal as averting a conflict that would have hit Germany's export-driven economy, while Italy's Prime Minister Giorgia Meloni said it was “positive” but needed to see details.
US officials noted that Trump retains the ability to increase tariffs if European countries fail to meet investment commitments. The deal stabilises the €1.4tn trade relationship and avoids a 30% tariff that Trump had threatened to impose from 1 August. EU trade commissioner Maroš Šefčovič described Trump as “a very tough negotiator” and conceded that the 15% rate marked a significant victory for Trump's tariff tactics.
