The United States and the European Union have reached a mutual tariff agreement, effectively preventing a transatlantic trade war. Under the deal, the US will impose a 15% tariff on various EU imports, but both sides have secured significant economic agreements in energy, defense, and trade.
The agreement was announced following a meeting in Scotland between US President Donald Trump and European Commission President Ursula von der Leyen, held at Trump’s Turnberry golf resort. Trump described the deal as "perhaps the greatest trade agreement in history."
The EU has committed to spending hundreds of billions of dollars on US energy products and military equipment.
A 15% US tariff will apply to many EU imports, including automobiles, pharmaceuticals, and semiconductors.
In return, US products will be exported to EU countries without tariffs.
Without the deal, Trump had threatened to impose tariffs of up to 30% on EU goods.
Trump claimed the EU would spend an additional $750 billion on US energy, invest $600 billion, and purchase "hundreds of billions of dollars" in military equipment.
Von der Leyen acknowledged the deal "creates stability in uncertain times" and protects EU access to the US market but admitted the 15% tariff could pose challenges for some European industries.
European Leaders' Reactions:
- German Chancellor Friedrich Merz welcomed the agreement as a move that prevents rising tensions in trade relations.
- Wolfgang Niedermann, a member of the Federation of German Industries, criticized it as an “unsatisfactory compromise,” warning that the 15% tariff could harm Germany’s export-driven industry.
- Italian Prime Minister Giorgia Meloni and French Minister for European Affairs Benjamin Haddad cautiously supported the agreement but expressed concerns over its sustainability and balance.
The US administration is still considering possible tariffs on European aviation, pharmaceutical, and tech sectors, raising the risk of future tensions.
Meanwhile, Brussels views the agreement as "temporary stability in a time of uncertainty" and intends to continue negotiations for further concessions in additional sectors.
