U.S. and EU Reach Trade Deal, Averting Higher Tariffs

The U.S. and EU have struck a deal to cap tariffs at 15% on most European goods, narrowly avoiding a 30% hike that was set to take effect August 1. The agreement, announced jointly by former President TRUMP and European Commission President Ursula von der Leyen, resolves weeks of economic tension between the two trading blocs.

Automobiles remain subject to the new levy, while aircraft, pharmaceuticals, and select industrial chemicals secured exemptions—a concession critical for export-driven economies like Germany and France. "This is a very powerful deal," Trump declared during the announcement, framing it as the largest trade agreement in history. Von der Leyen acknowledged "tough negotiations" but emphasized the stability achieved through the compromise.

In exchange for the tariff ceiling, the EU committed to $750 billion in U.S. energy purchases and additional investments. The arrangement prevents cumulative duties on exempted sectors, a key sticking point during talks. Both leaders presented a unified front at the press conference, signaling a temporary détente in transatlantic trade relations.