Trump and EU Reach Trade Agreement
President Donald Trump finalized a trade agreement with the European Union on Sunday following a meeting with European Commission President Ursula von Leyen in Scotland, according to reports from Reuters.
Under this new deal, 15% tariffs will be applied to EU imports entering the United States. In exchange, the EU will make significant purchases of US energy and military equipment. During a discussion on July 11, Trump told von Leyen that the US planned to impose 30% tariffs on EU goods, addressing ongoing trade challenges.
The meeting took place in Turnberry, Scotland, with a press conference featuring both leaders. In a recent update, Trump stated that the EU would not reciprocate with tariffs on US products moving into their market.
Trump questioned whether the EU could offer tariffs lower than the agreed 15%. While Europe initially sought to avoid imposing tariffs altogether, businesses there seem optimistic about the new agreement.
Trump remarked that the US has strong relations with the EU but felt the prior arrangements were unfairly one-sided. The US and EU represent the largest global economies, with trade between them reaching approximately $1.7 trillion, according to von Leyen.
While the deal was in progress, Trump expressed some hesitance during a livestream, noting several unresolved issues. He emphasized the necessity of fairness in the agreement.
Von Leyen pointed out that the aim of the contract is to rebalance trade, as the US operates at a deficit while the EU has a surplus. Recent data showed a significant US trade deficit with the EU, nearing $236 billion in 2024.
Additionally, Trump highlighted the imbalance in automotive trade, pointing out that the EU restricts American cars while importing millions of vehicles from the US. In 2024, the US exported 164,857 cars to the EU, contrasted with 749,170 cars imported from the EU.
Trump also commended von Leyen, saying she has done a commendable job for the EU, even if it’s not necessarily in favor of the US.
