Trump announces EU trade deal with 15% tariffs

President Donald Trump announced Sunday that the U.S. reached a trade deal with the European Union, following a pivotal discussion with European Commission President Ursula von der Leyen days before the Aug. 1 tariff deadline.

Trump said that the deal imposes a 15% tariff on most European goods to the U.S., which is lower than the 30% rate he had previously threatened against the United States’ largest trading partner.

Trump also said that the 27-member bloc has agreed to purchase $750 billion worth of U.S. energy and $600 billion worth of investments into the U.S.

“It’s a very powerful deal, it’s a very big deal, it’s the biggest of all the deals,” Trump said alongside von der Leyen.

“It’s a good deal, it’s a huge deal, with tough negotiations,” von der Leyen said after the meeting.

The announcement comes after Trump during a press conference before his meeting with the European leader said that there was a 50-50 chance they would reach a framework of a deal, following weeks of painstaking negotiations.

The Sunday announcement marks a pivotal moment for Trump. It also comes after weeks of uncertainty surrounding U.S.-EU trade talks.

In response to Trump’s threat earlier this month imposing 30% tariffs, the EU said it was preparing to impose countermeasures if necessary.

The bloc eyed retaliatory duties on a wide range of U.S. goods, and other measures, like the EU’s “Anti-Coercion Instrument.”

The U.S.-EU trade relationship was valued at 1.68 trillion euros ($1.97 trillion) when taking into account both services and goods trading in 2024, according to the European Council.

While the EU recorded a surplus on goods trading, it noted a deficit in the services realm. This left the EU with an overall trade surplus of around 50 billion euros with the U.S. last year.

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