US, EU strike major trade deal; Trump announces 15% tariffs for European exports — ‘best we could get’

Speaking in Turnberry, Scotland, Trump said the agreement includes major commitments from the EU on energy purchases and investment.

By: Express Web Desk

Updated: July 28, 2025 06:57 AM IST

3 min read

President Donald Trump shakes hands with European Commission President Ursula von der Leyen as they meet at the Trump Turnberry golf course in Turnberry, Scotland Sunday, July 27, 2025. (AP Photo)

US President Donald Trump said on Sunday that the United States and the European Union have reached a basic agreement on a new trade deal, following talks with European Commission President Ursula von der Leyen in Scotland. The agreement includes a 15% tariff on most goods imported from the EU to the US, according to the BBC.

Speaking at his Turnberry golf resort, Trump said, “The European Union is going to agree to purchase from the United States $750 billion worth of energy. They are going to agree to invest into the United States $600 billion more than they’re investing already.”

The deal came just before a US deadline to impose a 30% tariff on European imports starting August 1, which Trump had warned about in a letter sent to EU officials earlier this month.

Also read | Trump says US and EU have ‘good chance’ of reaching trade deal

The new 15% tariff, which will take effect on Friday, is higher than the 10% rate previously applied to British goods. It is, however, the same as the rate recently agreed in the US-Japan trade deal, CNN reported.

Von der Leyen, who sat next to Trump at the announcement, described the outcome as a “huge deal” and said it would “rebalance but enable trade on both sides”, according to the BBC. She added that, regarding the auto sector, “a 15% tariff rate was the best we could get.”

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The talks also touched on pharmaceutical exports, one of Europe’s biggest exports to the US. Last month, the Trump administration had threatened a 200% tariff on European medicines, which would have severely affected the industry. Trump said on Sunday that pharmaceuticals were “very special” and “need to be made in the United States,” but acknowledged the country would “still import a lot” of medicine from Europe.

Commerce Secretary Howard Lutnick, speaking earlier on Fox News Sunday, said there would be no extension beyond the August 1 deadline. “The tariffs are set. They’ll go into place,” he said, adding that larger economies can continue negotiations with the US.

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The EU had been preparing countermeasures in case no deal was reached. Some member states believed having a retaliation plan ready was essential to maintain leverage.

Germany, Europe’s biggest economy, had pushed for lower tariffs on its car exports to the US, which have been hit by a 27.5% duty since April. European carmakers exported nearly €39 billion worth of vehicles to the US last year.

While the deal appears to be an initial framework with details yet to be confirmed, both sides indicated they would continue discussions. Trump said, “We made it.”

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