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The United States and the European Union have reached a trade agreement, resolving a months-long impasse between two of the world’s largest economic powers.
Following pivotal negotiations in Scotland between President Donald Trump and European Commission President Ursula Von der Leyen, an accord was reached, establishing a 15% US tariff on all EU goods.
This represents a reduction from the 30% import tax rate that President Trump had threatened to impose, commencing Friday. He stated that the 27-member bloc would open its markets to US exporters with zero percent tariffs on select products.
President Von der Leyen also lauded the agreement, emphasizing its potential to foster stability for both allies, who collectively account for nearly a third of global trade.
President Trump has employed tariffs against key US trade partners in an effort to reshape the global economy and address the American trade deficit.
In addition to the EU, he has also secured tariff agreements with the UK, Japan, Indonesia, the Philippines, and Vietnam, although he has not achieved his stated objective of finalizing “90 deals in 90 days.”
The agreement was announced on Sunday following private discussions between President Trump and President Von der Leyen at his Turnberry golf course in South Ayrshire.
President Trump, currently on a five-day visit to Scotland, stated after their meeting: “We have reached a deal. It’s a good deal for everybody.”
“It’s going to bring us closer together,” he added.
President Von der Leyen also hailed it as a “huge deal” following “tough negotiations.”
President Trump indicated that the EU would increase its investment in the US by $600 billion (£446 billion), including purchases of American military equipment, and allocate $750 billion to energy.
President Von der Leyen stated that this investment in American liquified natural gas, oil, and nuclear fuels would contribute to reducing European dependence on Russian energy sources.
Certain goods, including aircraft and plane parts, specific chemicals, and some agricultural products, will be exempt from tariffs. A separate agreement concerning semiconductors may be announced in the near future.
“I want to thank President Trump personally for his personal commitment and his leadership to achieve this breakthrough,” President Von der Leyen said.
“He is a tough negotiator, but he is also a dealmaker.”
The US president also affirmed that a 50% tariff on steel and aluminum, implemented globally, would remain in effect.
Both parties can characterize this agreement as a victory of sorts.
For the EU, the tariffs could have been more severe; while not as favorable as the UK’s 10% tariff rate, it mirrors the 15% rate negotiated by Japan.
For the US, this equates to an anticipated $90 billion in tariff revenue for government coffers, based on the previous year’s trade figures, in addition to hundreds of billions of dollars in investment now expected to flow into the US.
Based on current information, the deal does not appear to significantly facilitate the opening of the EU market to US imports such as American cars or agricultural products.
Nevertheless, the US stands to gain significantly from this agreement. The benefits for the EU are less apparent.
Notably, President Von der Leyen referred to “rebalancing” the trading relationship.
Previously, the EU has maintained that the relationship is not imbalanced, as the EU purchases significantly more services from the US than it sells.
It appeared that President Von der Leyen was deliberately using President Trump’s terminology to finalize the agreement.
One aspect is clear: the US president is celebrating the achievement of what he considers the largest trade deal in history.
Trade in goods between the EU and the US totaled approximately $976 billion last year. The US imported roughly $606 billion in goods from the EU and exported around $370 billion in 2024.
This imbalance, or trade deficit, is a key concern for President Trump, who asserts that trade relationships like this result in the US “losing.”
Had he followed through on tariffs against Europe, import taxes would have been imposed on a range of products, from Spanish pharmaceuticals to Italian leather, German electronics, and French cheese.
The EU had indicated its readiness to retaliate with tariffs on US goods, including car parts, Boeing planes, and beef.
European leaders have offered cautious welcomes to the agreement.
The Irish Prime Minister, Taoiseach Micheál Martin, noted that tariffs would still be higher than before, rendering trade “more expensive and more challenging.”
Among EU countries, Ireland is the most reliant on the US as an export market.
Germany’s Chancellor Friedrich Merz posted on X that the deal “succeeded in averting a trade conflict that would have hit Germany’s export-oriented economy hard.”
“Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike,” he added.
Italian Prime Minister Giorgia Meloni welcomed the deal, but stated that she needed to review the details, according to Italy’s Ansa news agency.
British Prime Minister Keir Starmer plans his own meeting with President Trump at Turnberry on Monday.
The US president will be in Aberdeen on Tuesday, where his family owns another golf course and is opening a third next month.
The president and his sons plan to assist in the ribbon-cutting ceremony for the new fairway.
Lehrer, a Harvard-trained mathematician, wrote darkly humorous songs, often with political connotations.
Investigators are yet to reveal a motive for Saturday afternoon’s attack in Traverse City.
This deal demonstrates the seriousness of President Trump’s commitment to renegotiating America’s trading relationship with the rest of the world.
The US president struck the “huge deal” with Ursula von der Leyen at his luxury Turnberry resort.
President Trump played a round of golf at Turnberry on Saturday while hundreds of protesters gathered in Aberdeen and Edinburgh.
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