Daijiworld Media Network - London
London, Jul 28: In a major development aimed at reshaping transatlantic trade relations, US President Donald Trump and European Commission President Ursula von der Leyen jointly announced a new trade agreement that will see the United States impose a 15% baseline tariff on most European Union (EU) goods, while securing key concessions for American exports.
The announcement came during a high-profile press briefing at the Trump Turnberry resort in South Ayrshire, Scotland, following intense negotiations. The agreement marks what both leaders described as a “reset in trade balance” and a move towards “fairer two-way commerce.”
Key Highlights of the Agreement:
• The US will apply a uniform 15% tariff on a broad range of EU imports.
• In return, the EU has committed to purchase $750 billion in American energy and invest an additional $600 billion into US-based projects and ventures.
• American cars are set to regain access to European markets under relaxed regulations.
• US agricultural exports will be granted preferential access within the EU.
• Pharmaceuticals emerged as a point of contention. While Trump claimed they were excluded, von der Leyen stated that they are included under the 15% tariff bracket.
• Existing 50% tariffs on EU steel and aluminium will remain unchanged.
While Trump touted the deal as a victory for American industry—particularly the automobile and farming sectors—critics in Europe have sounded alarms over what they view as an unequal compromise.
At a separate EU press briefing, von der Leyen defended the tariff on EU car exports, calling it a net reduction from the previous 27.5% rate that included legacy tariffs from Trump’s earlier term and pre-existing levies.
“This is a step back from the brink, not ideal, but better than the status quo,” she remarked, while not ruling out future retaliatory actions or adjustments.
However, Bernd Lange, Chair of the European Parliament’s Committee on International Trade, harshly criticized the deal, calling it “significantly imbalanced” and “economically risky.”
“This is a deal with a slant. Clearly, concessions have been made that are difficult to bear,” Lange stated, warning of long-term impacts on EU jobs and economic security.
Context:
Prior to this agreement, more than 70% of EU exports to the US were already under tariff regimes:
• 50% on steel and aluminium
• 25% on automobiles and parts
• 10% on most other goods
Trump had previously threatened to escalate the 10% blanket tariff to 30% if no deal was reached by August 1—a looming deadline that likely pressured negotiators on both sides.
As trade dynamics continue to evolve, the newly minted deal sets the stage for a complex recalibration of US-EU commercial ties, with political and economic ramifications yet to fully unfold.