US and EU reach trade deal
Trump's meeting with European Commission President Ursula von der Leyen resulted in a tariff agreement that will avert a transatlantic trade war
What happened
President Donald Trump and European Commission President Ursula von der Leyen Sunday struck a last-minute deal in Scotland to avert a major transatlantic trade war.
After months of tense talks, both sides agreed to a 15% U.S. import tariff on most EU goods — half the previously threatened rate. The EU will also spend $750 billion on U.S. energy products and invest a further $600 billion in the American economy over three years.
Who said what
"It solves a lot of stuff," Trump said, describing the agreement as "really the biggest trading partnership in the world." Von der Leyen admitted that the talks were "tough," but said both sides worked hard to "come to a common position." EU Trade Commissioner Maros Sefcovic said that Trump was a “very tough negotiator."
The agreement stabilizes the "biggest and deepest commercial and investment relationship the global economy knows," said Jorn Fleck, the senior director of the Atlantic Council's Europe Center, per CNN. But it "doesn't enhance trade," said economist Joe Brusuelas at consulting firm RSM. "You're going to pay more for your European imports."
What next?
Details of the deal "remain murky," said CNN. Neither party published the text of the agreement and "they appeared to have different interpretations of some of the details," said The Wall Street Journal. Still, markets are expected to respond positively to the announcement.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Could smaller cars bring down vehicle prices?Today’s Big Question Trump seems to think so, but experts aren’t so sure
-
2025’s most notable new albumsThe Week Recommends These were some of the finest releases of the past year
-
Trump aims to take down ‘global mothership’ of climate scienceIN THE SPOTLIGHT By moving to dismantle Colorado’s National Center for Atmospheric Research, the White House says it is targeting ‘climate alarmism’
-
US offers Ukraine NATO-like security pact, with caveatsSpeed Read The Trump administration has offered Ukraine security guarantees similar to those it would receive from NATO
-
Hong Kong court convicts democracy advocate LaiSpeed Read Former Hong Kong media mogul Jimmy Lai was convicted in a landmark national security trial
-
Australia weighs new gun laws after antisemitic attackSpeed Read A father and son opened fire on Jewish families at Sydney’s Bondi Beach, killing at least 15
-
Europe sets 2027 deadline to wean itself from Russian gasIN THE SPOTLIGHT As negotiators attempt to end Russia’s yearslong Ukraine invasion, lawmakers across the EU agree to uncouple gas consumption from Moscow’s petrochemical infrastructure
-
Benin thwarts coup attemptSpeed Read President Patrice Talon condemned an attempted coup that was foiled by the West African country’s army
-
Pakistan: Trump’s ‘favourite field marshal’ takes chargeIn the Spotlight Asim Munir’s control over all three branches of Pakistan’s military gives him ‘sweeping powers’ – and almost unlimited freedom to use them
-
Is Europe finally taking the war to Russia?Today's Big Question As Moscow’s drone buzzes and cyberattacks increase, European leaders are taking a more openly aggressive stance
-
Pushing for peace: is Trump appeasing Moscow?In Depth European leaders succeeded in bringing themselves in from the cold and softening Moscow’s terms, but Kyiv still faces an unenviable choice
