EU and US agree trade deal, with 15% tariffs for European exports to America

Sarah SmithBBC North America Editor, at Turnberry, ScotlandI assume it is the largest deal ever made – TrumpThe United States and European Union have reached a commerce deal framework, ending a months-long standoff between two of the world’s greatest financial companions.After make-or-break negotiations between President Donald Trump and European Fee President Ursula Von der Leyen in Scotland, the pair agreed a US tariff on all EU items of 15%. That’s half the 30% import tax charge Trump had threatened to implement beginning on Friday. He mentioned the 27-member bloc would open its markets to US exporters with zero per cent tariffs on sure merchandise.Von der Leyen additionally hailed the deal, saying it will carry stability for each allies, who collectively account for nearly a 3rd of world commerce.Trump has wielded tariffs towards main US commerce companions in a bid to reorder the worldwide economic system and trim the American commerce deficit.In addition to the EU, he has struck tariff agreements with the UK, Japan, Indonesia, the Philippines and Vietnam, though he has not achieved his aim of “90 offers in 90 days”.Sunday’s settlement was introduced after non-public talks between Trump and Von der Leyen at his Turnberry golf course in South Ayrshire.Trump – who’s on a five-day go to to Scotland – mentioned following their transient assembly: “We now have reached a deal. It is a whole lot for everyone.””It should carry us nearer collectively,” he added.Von der Leyen additionally hailed it as a “large deal”, after “powerful negotiations”.Trump performs his second spherical of golf this weekend at Turnberry earlier than the EU talksTrump mentioned the EU would enhance its funding within the US by $600bn (£446bn), together with American navy tools, and spend $750bn on vitality.That funding over the following three years in American liquified pure gasoline, oil and nuclear fuels would, Von der Leyen mentioned, assist scale back European reliance on Russian energy sources.Some items won’t appeal to any tariffs, together with plane and aircraft elements, sure chemical compounds and a few agricultural merchandise. A separate deal on semiconductors could also be introduced quickly.However a 50% US tariff Trump has carried out on metal and aluminium globally would keep in place, he mentioned.”I need to thank President Trump personally for his private dedication and his management to attain this breakthrough,” Von der Leyen mentioned.”He’s a tricky negotiator, however he’s additionally a dealmaker.”Each side can paint this settlement as one thing of a victory.For the EU, the tariffs might have been worse: it’s inferior to the UK’s 10% tariff charge, however is similar because the 15% charge that Japan negotiated final week.For the US it equates to the expectation of roughly $90bn of tariff income into authorities coffers – based mostly on final 12 months’s commerce figures, plus there’s tons of of billions of {dollars} of funding now because of come into the US.One factor is obvious: Trump is celebrating after hanging the most important commerce deal in historical past.Whereas there may be a number of upside for the US on this deal, it’s much less clear what the EU features.It was notable that Von der Leyen spoke about “rebalancing” the buying and selling relationship. Beforehand the EU has argued the connection is just not out of steadiness because the EU buys much more companies from America than it sells to them. It sounded as if Von der Leyen was intentionally talking Trump’s language to be able to seal the settlement.It got here after the US president completed 18 holes on the Turnberry resort with visitors and household, together with his son Eric, amid showery situations.Commerce in items between the EU and US totalled about $976bn final 12 months. The US imported about $606bn in items from the EU and exported round $370bn in 2024.That imbalance, or commerce deficit, is a sticking level for Trump. He says commerce relationships like this imply the US is “shedding”.If he had adopted by way of on tariffs towards Europe, import taxes would have been levied on merchandise from Spanish prescribed drugs to Italian leather-based, German electronics and French cheese.The EU had mentioned it was ready to retaliate with tariffs on US items together with automobile elements, Boeing planes and beef.Ayrshire bowlers give their verdict on Trump’s visitEuropean leaders cautiously welcomed the deal.The Irish Prime Minister, the Taoiseach Micheál Martin, famous the truth that tariffs would nonetheless be greater than earlier than, making commerce “dearer and more difficult”.Amongst EU international locations, Eire is essentially the most reliant on the US as an export market.Germany’s Chancellor Friedrich Merz posted on X {that a} commerce battle would have hit Germany exhausting.”Steady and predictable commerce relations with market entry profit everybody on either side of the Atlantic, companies and shoppers alike,” he added.Italian Prime Minister Giorgia Meloni welcomed the deal, however mentioned she wanted to see the main points, Italy’s Ansa information company reported.British Prime Minister Keir Starmer plans his personal assembly with Trump at Turnberry on Monday.The US president can be in Aberdeen on Tuesday, the place his household has one other golf course and is opening a 3rd subsequent month.The president and his sons plan to assist lower the ribbon on the brand new fairway.