US and the EU have signed a large-scale trade deal

The United States and the European Union have reached a framework trade deal that will impose 15% tariffs on most European goods but will prevent an escalation of the conflict between the two allies, which account for almost a third of world trade.

US President Donald Trump and European Commission President Ursula von der Leyen announced this after talks in Scotland that ended on Sunday evening, Reuters reports.

“I think this is the biggest deal ever,” Trump said after an hour-long meeting with von der Leyen.

The European Commission President said the 15% tariff would apply “across all areas.”

“We have a trade deal between the two largest economies in the world, and it’s a big deal. It’s a huge deal. It’s going to bring stability. It’s going to bring predictability,” she said.

The deal also includes $600 billion in EU investment in the United States and significant EU purchases of energy and military equipment from the United States.

But the 15% base tariff will be seen by many in Europe as a poor outcome compared with the original European ambition of zero tariffs, although it is better than the 30% tariff threatened by Trump, Reuters notes.

“We agree that the tariff … on cars and everything else will be a direct tariff of 15%,” Trump said.

But the 15% base rate will not apply to steel and aluminum, which will remain at a 50% tariff.

Trump, who seeks to reshape the global economy and reduce the long-standing US trade deficit, has so far struck deals with Britain, Japan, Indonesia and Vietnam, although his administration has fallen short of its promise of “90 deals in 90 days.”

He has repeatedly criticized the European Union, saying it was “designed to cheat the United States” on trade. His main concern is the US-EU trade deficit in goods, which reached $235 billion in 2024, according to the US Census Bureau. At the same time, the EU points to a US surplus in services that partially redresses the balance.

On July 12, Trump reportedly threatened to impose a 30% tariff on EU imports starting August 1.

The EU, in turn, has said it is ready to impose tariffs in response on $109 billion worth of US goods.

Tags: EU, USA, duties