The Trump administration and the 27-nation European Union agreed on Sunday to a trade framework setting a 15% tariff on most imported goods from Europe, while goods from the U.S. will face zero tariffs.
U.S. exports to the EU include fuels, pharmaceuticals, machinery, and aircraft. The EU, in turn, exports cars, pharmaceuticals, vehicles, semiconductors and machinery to the U.S.
As part of the deal, the EU agreed to purchase $750 billion worth of energy from the U.S., and invest $600 billion more in the U.S.
“All of the countries will be opened up to trade with the United States at zero tariffs, and they’re agreeing to purchase a vast amount of military equipment,” President Donald Trump said, according to CNN.
The agreement, which has yet to be finalized, staves off the 30% tariffs Trump had threatened to impose on the EU earlier this month, as well as high import duties on U.S. goods into EU countries.
Trade between the U.S. and EU totaled around $975 billion worth of goods in 2024, according to Commerce Department data.
Ursula von der Leyen, the president of the European Commission, said the deal creates certainty for companies on both sides of the Atlantic.
“Today with this deal, we are creating more predictability for our businesses,” von der Leyen said in a news release. “In these turbulent times, this is necessary for our companies to be able to plan and invest. We are ensuring immediate tariff relief. This will have a clear impact on the bottom lines of our companies.”
The deal comes after the U.S. announced trade agreements with Japan, Vietnam, Indonesia, and the United Kingdom.
The Trump administration has yet to reach final trade agreements with the top three U.S. trade partners — Mexico, Canada and China.
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