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U.S. and EU Reach New Trade Deal with 15% Tariffs

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Business Honor - US-EU Trade Deal Sets 15% Tariffs

Business Honor
28 July, 2025

U.S. and EU agree on trade deal with tariffs, energy purchases, and investment commitments.

U.S. President Donald Trump on Sunday said that the United States and the European Union had agreed on a new trade deal after holding high-level talks with European Commission President Ursula von der Leyen. The revelation is barely two days before the August 1 deadline for scheduled tariff adjustments. Under the new deal, the U.S. will impose a 15% tariff on an extensive list of European products, including cars. Some industries like aircraft parts, chemicals, and drugs would not be subject to the new tariffs. Von der Leyen assured that the 15% rate would not be in addition to any tariffs already being charged.

The deal also contains EU pledges to raise economic engagement with the United States. The 27-member group will buy $750 billion in American energy and invest another $600 billion in the U.S. economy, Trump said. There was also a mention of future EU purchases of American military hardware, though no amounts were specified. Both leaders underscored the importance of the deal at a joint press conference. Trump labeled it as "a very powerful deal," while von der Leyen also referred to the talks as fruitful and the result as in both parties' best interest.

European leaders welcomed the deal. Irish Prime Minister Micheál Martin described it as bringing predictability to the transatlantic trade relationship. German Chancellor Friedrich Merz pointed to the significance of the deal for the auto industry, and Dutch Prime Minister Dick Schoof highlighted how much stability it brings to European enterprises. The two-way trade relationship between U.S. and EU is one of the biggest in the world with total trade in goods and services registering nearly $2 trillion in 2024. The agreement is to define future cooperation between the two economic giants.