The United States and European Union have agreed to the “biggest trade deal ever” at Donald Trump’s Turnberry golf course in Scotland.
Trump met with the president of the EU Commission, Ursula von der Leyen, on Sunday to discuss terms ahead of a deadline on August 1.
The U.S. president had threatened to impose a 30% levy on all EU imports if a deal was not agreed to before then.
Highlights
- The U.S. and EU agreed to a major trade deal with a 15% tariff on most European goods, avoiding a threatened 30% levy by Trump.
- Europe will buy $750 billion in U.S. energy products and invest an additional $600 billion in the United States.
- The deal includes zero tariffs on aircraft, certain chemicals, semiconductors, and some agricultural products.
The U.S. and the EU agreed to a trade deal over the weekend
Image credits: Andrew Harnik/Getty Images
Announcing the terms, Trump said there would be a 15% tariff on most EU goods and no tariffs on many U.S. exports.
Europe has also agreed to purchase $750 billion in American energy products and invest an additional $600 billion in the U.S.
As well as this, Europe will purchase a “vast amount” of U.S. military equipment, and although this number had not yet been determined, Trump said it would be hundreds of billions.
“I just want to congratulate you,” Trump told Von der Leyen during a press conference at Turnberry, where he had been golfing with son Eric for the weekend.
Image credits: Andrew Harnik/Getty Images
“I think it’s good that we made a deal today instead of playing games and maybe not making a deal at all.
“I think it’s the biggest deal ever made,” Trump added.
At a later press conference, Von der Leyen described the U.S. president as a “tough negotiator” but also a “deal maker” and noted it was the “biggest trade deal ever.”
She said that the 15% tariff will apply across most sectors, including cars, semiconductors, and pharmaceuticals.
While zero-for-zero tariffs had been agreed on several strategic products, including all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials.
Von der Leyen said that purchases of U.S. energy products over the next three years would diversify the EU supply and replace Russian oil and gas.
“Today, with this deal, we are creating more predictability for our businesses. In these turbulent times, this is necessary for our companies to be able to plan and invest,” Von der Leyen said.
Trump has already negotiated trade deals with several countries
“We are ensuring immediate tariff relief. This will have a clear impact on the bottom lines of our companies. And with this deal, we are securing access to our largest export market.
“At the same time, we will give better access for American products in our market. This will benefit European consumers and make our businesses more competitive.
“This deal provides a framework from which we will further reduce tariffs on more products, address non-tariff barriers, and cooperate on economic security. Because when the EU and U.S. work together as partners, the benefits are tangible on both sides.”
Image credits: Andrew Harnik/Getty Images
Trump has already made trade deals with the UK, Japan, the Philippines, Vietnam, and Indonesia.
He will meet with UK Prime Minister Keir Starmer in Scotland on Monday to discuss the implementation of the trade deal, and the ongoing crisis in Gaza is also expected to arise.