Trump announces U.S. deal with European Union to impose 15% tariff
July 27 (UPI) -- President Donald Trump on Sunday announced 15% tariffs on most foreign goods from the European Union, down from the threatened 30%, as part of a trade agreement with the 27-nation bloc.
Trump announced the deal at his Turnberry Isle Country Club in Scotland after his public session with European Commission President von der Leyen. Trump said the European Union won't impose new tariffs on U.S. imports.
During the meeting with the media, both leaders said the chance of a deal was 50-50.
"You are known as a tough negotiator and dealmaker," von der Leyen told Trump, with reporters on hand.
Leyen said the agreement "will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic."
Trump said the deal was "satisfactory to both sides."
The European Union is the largest U.S. trading partner with $605 billion in goods yearly. The products are mainly drugs and pharmaceuticals, primarily from Ireland, as well as aircraft and heavy machinery, mainly from France and Germany.
The 50% tariffs on steel, like most other nations, would remain and more duties could happen for pharmaceutical products, as well as semiconductors. Trump has also threatened a 200% tariffs on any drugs imported to the U.S.
Trump said the deal would be "great for cars" and agriculture. Trump has previously noted that few American cars are sold in Europe.
On April 2, he said he would impose a 20% duty against the EU, with most trading nations imposed a baseline 10%. He paused the retaliatory tariffs on April 9 for 90 days.
In a letter to EU nations on July 12, the U.S. president threatened 30% retaliatory tariffs to take effect on Aug. 1.
"Imposing 30% tariffs on E.U. exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," von der Leyen said after Trump's letter.
Letters to other nations have threatened tariffs as high as 50%, including to Brazil.
The Trump administration has been negotiating with other nations, including reaching deals with China (30%), Japan (15%), Indonesia (19%) and Vietnam (20%). Britain, which is not part of the European Union, has a reduction in some tariffs of 10% on up to 100,000 vehicles and 25% on steel and aluminum.
Last year, the average U.S. tariffs on imports from the EU was 1.2%, according to Capital Economics' chief Europe economist.
The deal with the European Union is part of a broader trade agreement. EU had a $58.7 billion overall trade surplus with the U.S. in 2024. For goods, it was $168.6 billion but the deficit was $126 billion in services trade.
"The European Union is going to agree to purchase from the United States $750 billion worth of energy," Trump said.
The E.U. would also invest $600 billion into the United States.
In 2024, the bloc bought nearly $400 billion in goods.
Michael Brown, a senior research strategist at British-based Pepperstone brokerage, told The New York Times that U.S. defense companies likely will emerge as winners from the deal.
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The agreement also deals another blow to Detroit automakers, which objected to a similar deal the Trump administration reached with Japan. The 15% auto tariff on EU cars imported to the United States undercuts the 25% tariff American automakers pay if their cars are built in Mexico. Although von der Leyen said pharmaceuticals were included in the early framework, she acknowledged that Trump may ultimately place higher tariffs on drugs imported to the United States, undercutting the agreement. Still, in the eyes of the hard-working negotiators — and for the sake of the global economy — a deal is better than no deal. Now comes the hard part: figuring out the details.
