Catenaa, Monday, July 28, 2025- The US and the European Union agreed to a trade deal that includes 15% tariffs on most exports to the US, including automobiles, after weeks of negotiations.
Trump announced the deal Sunday after a meeting with European Commission President Ursula von der Leyen. He said the charge would cover automobiles.
The European leader said the rate would be “all inclusive,” though Trump said later it did not include pharmaceuticals and metals. Steel and aluminum “stays the way it is,” the US president added.
“I think that basically concludes the deal,” Trump told reporters at his golf club in Turnberry, Scotland. “It’s the biggest of all the deals.”
Von der Leyen said the agreement “will bring stability” and “it will bring predictability.”
The EU agreed to purchase $750 billion in energy, invest $600 billion in the US on top of existing investments, open up countries’ markets to trade with the US at zero tariffs and purchase “vast amounts” of military equipment, Trump said.
The transatlantic pact removes a major risk for markets and the global economy, a trade war involving $1.7 trillion worth of cross-border commerce, even though it means European shipments to the US are getting hit with a higher tax at the border.
The goals, Trump said, were more production in the US and wider access for American exporters to the European market.
Von der Leyen acknowledged that part of the drive behind the talks was a rebalancing of trade, but cast it as beneficial for both sides.
“The starting point was an imbalance,” von der Leyen said. “We wanted to rebalance the trade we made, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic, because the two biggest economies should have a good trade flow.”
