U.S. President Donald Trump and European Commission President Ursula von der Leyen have reached a last-minute deal to avert a transatlantic trade war, agreeing to a 15% flat tariff on EU exports to the United States. The breakthrough, announced Sunday during a high-stakes meeting at Trump’s Turnberry golf resort in Scotland, came just days before a looming August 1 deadline that could have seen tariffs rise to 30% across the board.
“We have reached a deal. It’s a good deal for everybody,” Trump told reporters, confirming that the new tariff will apply uniformly, including to the EU’s auto sector, currently taxed at 25%. In exchange, the EU has agreed to purchase $750 billion in U.S. energy and invest an additional $600 billion in the U.S. economy, Trump said.
Von der Leyen described the agreement as a step toward “stability and predictability” for both sides, but not all of Brussels may share her optimism. The deal falls short of the EU’s demands for sector-specific exemptions, particularly in steel, pharmaceuticals, and autos, and still requires approval from all 27 EU member states. Trump made it clear that pharmaceuticals will be excluded from the deal and suggested a potential 200% tariff on imported drugs. Meanwhile, hopes for a quota-based compromise on steel were dismissed by Trump, who insisted, “Steel is staying the way it is.”
The EU had prepared retaliatory tariffs on $109 billion worth of U.S. goods in case talks collapsed. While Sunday’s deal averts immediate escalation, it underscores the tense and transactional nature of Washington-Brussels relations as Trump pushes forward with his hardline global trade agenda.
