US and EU agree to 15% tariff in major trade deal
The United States and European Union have agreed to a 15% tariff rate on most EU goods entering the US, according to a report by Sky News on July 28th.
US President Donald Trump celebrated the agreement as the “biggest deal ever made”, while EU Commission President Ursula von der Leyen said it would help stabilise trade following months of tariff-related uncertainty.
But EU leaders are still unhappy with the terms.
French Prime Minister François Bayrou condemned the outcome, calling it a “sombre day” where the EU had been forced into submission by external pressure.
Hungarian Prime Minister Viktor Orbán, known for his vocal critiques of the EU, argued that it was “not an agreement… Donald Trump ate von der Leyen for breakfast.”
The agreement outlines $600 billion in EU investments into the US, alongside a pledge to buy American energy and defence equipment valued at $750 billion.
Trump clarified that the uniform 15% tariff would apply to cars and related goods as part of the deal. While steel and aluminium are exempt and will continue to face a higher tariff of 50%, UK industry received a boost on June 3rd after being excluded from this increase.
Von der Leyen emphasised that the “huge deal” would “bring stability, it will bring predictability, that’s very important for our businesses on both sides of the Atlantic.”
She added that the tariff rate was the “best we could get” for the car sector.
Negotiations concerning the spirits sector remain unresolved and are expected to continue in the coming weeks.
Trump identified “fairness”, specifically EU trade restrictions on American agriculture and automotive goods, as a key challenge in the negotiations. He also made clear that the United States would not reduce its import tax rate below 15 percent.
For months, Trump had warned major trading partners, including the European Union, that large tariffs could be introduced in an effort to reduce the US trade deficit.
Anticipating a possible breakdown in negotiations, the EU had prepared retaliatory tariffs targeting over €93 billion worth of US exports.
Von der Leyen characterised Trump as a “tough negotiator and dealmaker.”
This agreement shares several features with the recent US-Japan trade deal signed just days earlier.
Sky News, Maghrebi.org
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