US and EU agree on 15 percent tariffs to avert trade war

Al Jazeera

5 hours ago

The United States and European Union have reached a sweeping trade agreement, setting a 15 percent tariff on most goods, averting a major transatlantic trade war that could have rattled global markets.
The announcement came after a private meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen at Trump's Turnberry golf resort in Scotland.
The deal comes just days before Washington was due to impose 30 percent tariffs on EU imports.
'It was a very interesting negotiation. I think it's going to be great for both parties,' Trump told reporters. He added that it was 'a good deal for everybody… a giant deal with lots of countries'.
Von der Leyen welcomed the deal, saying it would 'bring stability; it will bring predictability that's very important for our businesses on both sides of the Atlantic'.
Trump claimed the EU committed to buying about $750bn worth of US energy, increasing investment in the United States by another $600bn and placing a large order for military equipment. Both leaders confirmed that the agreed tariff rate of 15 percent would apply broadly to automobiles and other goods.
'We have the opening up of all of the European countries,' Trump said. Von der Leyen echoed that, noting that the 15 percent rate was 'across the board, all inclusive' and that the European market was effectively now open.
The talks followed months of tense back-and-forth with Trump, who has long accused the EU of unfair trade practices. Just before negotiations began, he called the existing arrangements 'a very one-sided transaction; very unfair to the United States'.
Von der Leyen pointed to the combined economic might of the two powers, describing their trade volume as the world's largest, encompassing 'hundreds of millions of people and trillions of dollars'.
She acknowledged Trump's 'tough' reputation as a negotiator, to which he replied: 'But fair.'
Trade conflict averted
Earlier this month, negotiations appeared close to collapse when Trump threatened to proceed with the 30 percent tariff unless the EU matched the 15 percent terms he recently struck with Japan. Asked if he would accept anything lower, Trump flatly said, 'No'.
Had no agreement been reached, Brussels had prepared a long list of retaliatory tariffs targeting everything from beef and beer to Boeing aircraft and car parts.
German Chancellor Friedrich Merz said that the US-EU deal was a positive move that helped avoid a trade war and a serious blow to the auto sector.
'This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,' he said in a statement. 'This applies in particular to the automotive industry, where the current tariffs of 27.5 percent will be almost halved to 15 percent.'
Italian Prime Minister Giorgia Meloni said it was 'positive' that a trade deal had been reached; however, she needed to see the details, Italian news agency ANSA reported.
Trump and United Kingdom Prime Minister Kier Starmer are expected to meet on Monday, with trade also on the agenda. While a separate US–UK trade framework was unveiled in May, Trump insists the broader agreement is already concluded, though the White House admits some elements remain unfinished.
Trump will travel to Aberdeen on Tuesday to help open a third golf course under the family name. He and his sons are expected to cut the ribbon themselves.