The United States and the European Union have reached a landmark trade agreement, narrowly avoiding a transatlantic trade war just days before a scheduled escalation in tariffs. Following a private meeting at Turnberry, US President Donald Trump and European Commission President Ursula von der Leyen announced the deal on Sunday, which sets a 15% tariff on most European exports to the US.
“This is the biggest deal ever made,” Trump declared, calling the outcome “great for both parties.” Von der Leyen emphasized that the agreement would “bring stability and predictability” vital to transatlantic business.
The deal comes just days before the US was set to implement 30% tariffs on EU goods from August 1. It also reduces the existing tariff on European automobiles from a combined 27.5% to a unified 15% rate, offering major relief to the EU’s auto sector. While the majority of European exports will now face the 15% tariff, several key categories — such as aircraft components, semiconductor machinery, select chemicals, and certain agricultural products — will be fully exempt.
This sweeping accord follows a series of recent trade moves by the Trump administration, including preliminary agreements with Japan, the UK, Indonesia, Vietnam, and the Philippines, and a temporary truce with China. The EU remains America’s largest trade partner, with nearly $2 trillion in bilateral goods and services exchanged in 2024.
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