Here’s the latest on the U.S.–EU trade agreement, finalized on July 27, 2025, during the Trump–von der Leyen meeting in Scotland:
📌 Key Elements of the Agreement
1️⃣ 15% Tariff on Most EU Goods
The U.S. will impose a 15% tariff across the board on most European imports—auto, semiconductors, pharmaceuticals—significantly lower than the 30–50% levels previously threatened.
However, steel and aluminum tariffs remain at 50%, with no immediate plan for reduction.
2️⃣ Zero Tariffs on Strategic Goods
Certain categories—such as aircraft parts, semiconductor equipment, specific chemicals, and some agricultural products—are exempt from tariffs.
3️⃣ EU Commitments to U.S. Investment
The EU will invest approximately $600 billion into the U.S.
The EU also agreed to purchase $750 billion worth of U.S. energy, including LNG, oil, and nuclear.
Additional purchases of U.S. military equipment were mentioned, though details are non‑binding.
🎯 What It Means
Averting a Trade War
The agreement halted an imminent escalation—preventing planned 30–50% tariffs that could have sparked a broader global trade dispute.
Market Response
Markets reacted positively: U.S. equity futures rose ~0.4–0.6% as investor anxiety eased.
U.S. consumers and businesses may face higher prices, as the new 15% tariff hikes costs on imports.
Exporters in the EU could see reduced profit margins, especially in auto, pharma, and electronics sectors.
Unresolved and Ongoing Negotiations
Divergence remains between Trump and von der Leyen on whether pharmaceuticals and other goods are fully covered.
Sectors like agriculture and drinks are yet to be clarified; no formal documentation has been published yet.