The United States and the European Union reached a trade agreement on Sunday, July 27, agreeing to impose a 15% tariff on most EU exports, including cars, in a move aimed at averting a looming transatlantic trade war.
U.S. President Donald J. Trump met with European Commission President Ursula von der Leyen in Scotland on Sunday, where the two leaders finalized the deal just days before the August 1 deadline that would have triggered a 30% U.S. tariff on European goods.
The announcement of the 15% tariff agreement was disclosed in a Forbes report on Sunday.
“The U.S. has agreed to a trade deal with the European Union, President Donald Trump announced Sunday afternoon, agreeing to a 15% tariff rate on most exports, including European cars, from EU countries—just days before the Aug. 1 deadline set for Trump’s “reciprocal” tariffs,” the Forbes report read.
What you should know
The breakthrough follows a tense week in which the European Union prepared a list of €93 billion ($109 billion) worth of counter-tariffs on U.S. goods.
Last Thursday, the European Union said a negotiated outcome was “within reach” but simultaneously secured approval from member states to proceed with retaliation if talks collapsed. Those measures were scheduled to take effect in phases starting August 7, with tariffs of up to 30% on a wide range of American products.
- According to details earlier reported by Reuters on Thursday, diplomats familiar with the talks indicated that the anticipated 15% tariff would mirror a framework the U.S. federal government struck with Japan, covering sectors such as cars and pharmaceuticals, while exempting aircraft, some medicines, lumber, and certain agricultural products.
- In exchange, the EU was expected to make some concessions, which could include a reduction of its own import duties.
The agreement effectively halts what had been shaping up to be a major escalation in U.S.–EU trade tensions and replaces the threatened 30% levy with a lower rate.
