Edinburgh, July 28 — In a major development aimed at averting a full-blown transatlantic trade conflict, the United States and the European Union have reached what is being described as the “largest-ever” trade deal between the two economic powerhouses.
The agreement was concluded during a high-level meeting between U.S. President Donald Trump and European Commission President Ursula von der Leyen at Trump’s golf resort in Scotland, just days before the August 1 deadline that could have triggered sweeping 30% tariffs on European exports to the U.S.
“This is probably the biggest deal ever reached in any capacity,” President Trump told reporters, as quoted by AFP. “We’ve reached a deal. It’s a good deal for everybody.”
Under the terms of the agreement, a uniform 15% tariff will be imposed on all EU exports to the United States — significantly lower than the threatened 30% — covering major sectors including automobiles, pharmaceuticals, and semiconductors. The move replaces a previously fragmented tariff regime and is intended to provide greater clarity and consistency for exporters on both sides.
As part of the broader agreement, the European Union has committed to purchasing $750 billion worth of energy from the U.S., including liquefied natural gas (LNG), oil, and nuclear fuel. Additionally, the EU will invest another $600 billion in U.S.-based energy infrastructure and technologies over the next three years — a strategic shift aimed at reducing European dependence on Russian energy.
“This agreement will bring stability and predictability — essential factors for businesses across the Atlantic,” said President von der Leyen. “It’s a good deal that strengthens our partnership and reflects a shared commitment to free and fair trade.”
Von der Leyen, who led negotiations on behalf of the 27-member EU bloc, also confirmed that both sides had agreed to remove tariffs on several key product categories, including aircraft, certain chemicals, agricultural goods, and critical raw materials. She expressed optimism that further “zero-for-zero” agreements — notably in sectors such as alcoholic beverages — could be finalized in the near future.
The transatlantic trade relationship, valued at approximately $1.9 trillion annually in goods and services, has faced mounting strain in recent months. Since President Trump’s return to the White House in January, the EU has been subjected to a new wave of tariffs: 25% on cars, 50% on steel and aluminium, and a baseline 10% tariff on general goods — the latter of which was set to rise to 30% if no agreement had been reached.
European negotiators had been lobbying hard for exemptions, especially in industries vital to the economies of France and Germany, such as automotive manufacturing and aerospace. Many of these sectors have already been hit hard by escalating tariffs and global supply chain disruptions.
The new deal is being widely viewed as a step toward de-escalation and a foundation for more comprehensive trade cooperation in the future.
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