This article was originally published by The Epoch Times: US Strikes Trade Deal With European Union
The trade agreement sets a 15 percent tariff for most imports from the bloc, including automobiles.
The EU will also invest an additional $600 billion beyond its current investments in the United States and will purchase U.S. military equipment.
The agreement comes just days before a looming Aug. 1 deadline, when higher U.S. tariffs on European goods were set to take effect. In May, Trump threatened to impose a 50 percent tariff on nearly all EU imports, but later reduced the proposed rate to 30 percent in a July 12 letter to von der Leyen.
After the meeting with the EU president concluded in Turnberry, Scotland, members of both delegations shook hands and clapped.
In 2024, the United States had a goods trade deficit of $235.6 billion with the EU, a 12.9 percent increase compared with 2023.
“The starting point was an imbalance, a surplus on our side and a deficit on the U.S. side,” von der Leyen told reporters during the meeting. “And we wanted to rebalance the trade relation, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic.”
Trump said the two sides “wanted to make a deal.”
“This started months ago, this negotiation, so we knew what we were getting into,” Trump said, adding that the agreement was “satisfactory” for both the EU and the United States.
He said it’s a “giant deal with lots of countries” because the EU has 27 member states, and he acknowledged that it’s “not easy” reaching a unified agreement among them all.
Trump earlier accused the 27-member bloc of dragging its feet in negotiations. His threats to impose higher tariffs prompted EU officials to schedule urgent talks aimed at reaching a deal with his administration.
In a lengthy report detailing foreign trade barriers in March, the Office of the U.S. Trade Representative criticized the EU for imposing tariff and nontariff barriers that disadvantage U.S. exporters in the European market.
Trump called the new EU investments “substantial.”
“All of the countries will be opened up to trade with the United States at zero tariff,” he said. “And they’re agreeing to purchase a vast amount of military equipment. We don’t know what that number is, but the good news is we make the best military equipment in the world, so [you’ve] sort of got to do that, until somebody tops us, which is not going to happen.”
Automobile tariffs will also be capped at 15 percent. However, steel and aluminum tariffs will stay as they are, because “that’s a worldwide thing,” Trump said.
The EU has been subject to U.S. tariffs of 10 percent on most goods, with 25 percent tariffs on automobiles and 50 percent on steel and aluminum.
Commerce Secretary Howard Lutnick said that within two weeks, the United States will give an update on its plans with microchip tariffs, suggesting that it was a key reason for the EU’s desire to negotiate with Trump.
“I’ll let you wait for the two weeks until you get to announce your plan,” Lutnick said to Trump. “But we are going to be bringing chip manufacturing back to the United States.”
The United States and the 27-member bloc had been negotiating since early July to strike a trade deal. Trump imposed baseline tariffs on the EU in April before pausing them for 90 days to negotiate, but he had recently threatened to raise them to 30 percent if the trading bloc did not reach an agreement with his administration by Aug. 1.
On July 24, the EU member states voted to approve $109 billion in counter-tariffs on U.S. goods, including soybeans, almonds, cars, and pharmaceuticals.
Before the July 27 deal was cemented, those tariffs were scheduled to take effect on Aug. 7.
Recently, the Trump administration has struck tentative trade agreements with Japan, China, Indonesia, the Philippines, and the UK.
The deal with Japan includes a 15 percent tariff on Japanese imports and a commitment from Japan to open its markets to U.S. goods and invest $550 billion in the United States.
Trump arrived in Glasgow, Scotland, on July 25 to begin a planned five-day retreat to discuss bilateral trade and other issues with the leaders of the UK, Scotland, and the EU.
Austin Alonzo and Travis Gillmore contributed to this report.
If you found this article interesting, please consider supporting traditional journalism
Our first edition was published 25 years ago from a basement in Atlanta. Today, The Epoch Times brings fact-based, award-winning journalism to millions of Americans.
Our journalists have been threatened, arrested, and assaulted, but our commitment to independent journalism has never wavered. This year marks our 25th year of independent reporting, free from corporate and political influence.
That’s why you’re invited to a limited-time introductory offer — just $1 per week — so you can join millions already celebrating independent news.