(VOVWORLD) - The US struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade.
 US President Donald Trump shakes hands with European Commission President Ursula von der Leyen, after an announcement of a trade deal between the US and EU, in Turnberry, Scotland, Britain, July 27, 2025. (Photo: REUTERS) |
US President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Trump's golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations.
"I think this is the biggest deal ever made," Trump told reporters, lauding EU plans to invest some 600 billion USD in the United States and dramatically increase its purchases of US energy and military equipment.
Trump said the deal, which tops a 550 billion USD deal signed with Japan last week, would expand ties between the trans-Atlantic powers. Von der Leyen said the 15% tariff applied "across the board", later telling reporters it was "the best we could get."
While the tariff applies to most goods, including semiconductors and pharmaceuticals, there are exceptions.
The US will keep in place a 50% tariff on steel and aluminum. Von der Leyen said there would be no tariffs from either side on aircraft and aircraft parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials.