Trump announces trade deal with EU
Economy
The United States and the European Union struck a major trade deal on July 27, avoiding a trade war by agreeing to a 15% import tariff — half the originally threatened 30%. In return, the EU pledged $600 billion in investments into the US and increased purchases of American energy and defense goods.
President Donald Trump and European Commission President Ursula von der Leyen announced the deal in Turnberry, Scotland, after an hour-long meeting. Trump called it "the biggest trade deal ever," following a similar $550 billion agreement with Japan.
The 15% tariff applies broadly across EU goods, including automobiles, pharmaceuticals, and semiconductors. However, there are carve-outs for aircraft, some chemicals, agricultural products, and raw materials. Steel and aluminum imports from the EU will still face a 50% tariff, though discussions about a quota system are ongoing.
German Chancellor Friedrich Merz welcomed the deal, calling it a relief for Germany's export-heavy economy, especially its auto industry. Automakers like VW, BMW, and Mercedes-Benz stand to benefit.
Nevertheless, some in Brussels expressed concern. European Parliament trade committee chair Bernd Lange criticized the agreement as unbalanced, suggesting that large EU investments in the US could come at the bloc’s own economic cost.
The 15% tariff applies broadly across EU goods, including automobiles, pharmaceuticals, and semiconductors. However, there are carve-outs for aircraft, some chemicals, agricultural products, and raw materials. Steel and aluminum imports from the EU will still face a 50% tariff, though discussions about a quota system are ongoing.
German Chancellor Friedrich Merz welcomed the deal, calling it a relief for Germany's export-heavy economy, especially its auto industry. Automakers like VW, BMW, and Mercedes-Benz stand to benefit.
Nevertheless, some in Brussels expressed concern. European Parliament trade committee chair Bernd Lange criticized the agreement as unbalanced, suggesting that large EU investments in the US could come at the bloc’s own economic cost.
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