EU and US reach agreement on trade tariffs

The announcement came less than a week before the Friday deadline for higher tariffs proposed by Donald Trump. In May, the US president proposed a 50% tariff on almost all EU products, which he later reduced to 30%.

President Trump announced on Sunday, after meeting with European Commission President Ursula von der Leyen, that t

he 15% tariff would apply to cars "and everything else."

As part of the agreement, the EU has also agreed not to impose tariffs on US products and to

• purchase $750 billion worth of energy (presumably mainly LNG),
• invest $600 billion in the United States on top of existing investments, and
• purchase "huge quantities" of military equipment.

The President of the European Commission stated that, under the agreement, the customs tariff is "all-encompassing," although Trump later clarified that medicines and metals are not covered by the agreement.

Ursula von der Leyen also said that 0% tariffs had been agreed on certain strategic areas, including aircraft and aircraft parts, certain chemicals, and certain medicines. She added that no decision had yet been made on tariffs on wine and spirits.

Today's deal creates certainty in uncertain times. It delivers stability and predictability, for citizens and businesses on both sides of the Atlantic,

von der Leyen told reporters before leaving Scotland.

It will be worth waiting for the details, as there appears to be some contradiction in the statements as to what the 15% tariff will apply to and what it will not. This is confirmed by the fact that Howard Lutnick, the US Secretary of Commerce, has announced that a decision on semiconductors, which, like medicines, are being considered for special tariffs, could be made within roughly two weeks.

It should be noted that although a 0% tariff would have been the ideal situation for the European Union (which was really just a pipe dream), under the current agreement, EU car manufacturers – which were previously the jewels of the continent's industry – are now facing more favorable customs tariffs than originally planned.

We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade,

said German Chancellor Friedrich Merz about the agreement, adding that this "applied in particular to the automotive industry, where the current 27.5% tariffs have been almost halved". Italian Prime Minister Giorgia Meloni also considers it positive that the EU has reached an agreement with the United States, but she still needs to see the details before taking a clear position, according to the Italian news agency Ansa.

The announcement marks the end of months of often tense diplomatic maneuvering between Brussels and Washington. Prior to the announcement of the agreement, the EU had already prepared to impose "counter-tariffs" on approximately €100 billion worth of US products if no agreement was reached. The EU also repeatedly signaled to its American negotiating partners that it was willing to accept a lower tariff rate if it was "reasonable for both sides."

We have reached a deal. It's a good deal for everybody,

Trump said at his golf club in Turnberry, Scotland.

Cover photo (for illustration purposes only): Getty Images