Trump Announces Trade Deal with the European Union

U.S. President Donald Trump announced today a new trade agreement with the European Union that will impose a 15 percent tariff on most European goods entering the United States, including cars.

The deal was struck days before the 1 August tariff deadline following talks with European Commission President Ursula von der Leyen. “It’s a very powerful deal, it’s a very big deal, it’s the biggest of all the deals,” Trump said this morning.

Von der Leyen confirmed that some goods, such as aircraft components, chemicals, and pharmaceuticals, would be excluded. She also clarified that the new tariff would not be added on top of existing duties.

Trump had previously threatened a 30 percent tariff if no agreement was reached. The 15 percent rate is higher than the 10 percent sought by the EU.

As part of the deal, the EU has agreed to purchase 750 billion dollars’ worth of US energy and invest an additional 600 billion dollars into the American economy. ABC News reported that Trump also stated the EU would be “purchasing hundreds of billions of dollars worth of military equipment.”