The United States and the European Union have reached a trade agreement, ending a months-long standoff between two of the world’s largest economic partners.
After high-stakes talks at Trump’s Turnberry golf course in South Ayrshire, Scotland, President Donald Trump and European Commission President Ursula Von der Leyen agreed on a 15% US tariff on all EU goods, half the 30% rate Trump had threatened to impose starting Friday.
Trump said the 27-member bloc would open its markets to certain US exports with zero tariffs. Von der Leyen hailed the agreement, saying it would bring stability to both allies, who together account for almost one-third of global trade.
Trump has been leveraging tariffs on major US trade partners in an effort to reshape global trade and reduce the US trade deficit. He has also reached tariff agreements with the UK, Japan, Indonesia, and Vietnam, though he has not met his “90 deals in 90 days” goal.
The deal was announced after private talks between Trump and Von der Leyen. “We have reached a deal. It’s a good deal for everybody. It’s going to bring us closer together,” Trump said.
Under the agreement, the EU will increase investment in the US by $600 billion, purchase hundreds of billions of dollars in American military equipment, and spend $750 billion on energy, including LNG, oil, and nuclear fuels, to reduce reliance on Russian energy. Von der Leyen thanked Trump for his commitment and leadership, calling him “a tough negotiator but also a dealmaker.”
Trump confirmed that a 50% tariff on global steel and aluminum imports would remain in place.
Both sides claim a win: for the EU, the 15% rate is better than the threatened 30% and matches Japan’s deal; for the US, it represents about $90 billion in tariff revenue and a massive boost in foreign investment.
Trade between the EU and the US totaled about $975.9 billion last year, with $606 billion in imports and $370 billion in exports. Without the deal, tariffs would have hit a wide range of European goods, while the EU had prepared retaliatory tariffs on US car parts, Boeing planes, and beef.
UK Prime Minister Keir Starmer plans to meet Trump at Turnberry on Monday. Trump will then travel to Aberdeen on Tuesday to inaugurate a new golf course with his family.
