President Donald Trump announced on Sunday that the United States and the European Union have reached a framework for a comprehensive trade deal following high-stakes talks with European Commission President Ursula von der Leyen in Turnberry, Scotland.
The agreement establishes a flat 15% tariff on all goods between the two economies, marking the end of months of escalating threats. Trump also revealed that the EU will purchase $750 billion in U.S. energy and commit an additional $600 billion in American investments. “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,” Trump said, calling it “the biggest deal ever made.”
Collectively, the U.S. and EU exchanged nearly $1 trillion in goods last year. The deal could cool fears of a transatlantic trade war that threatened to destabilize both economies. Von der Leyen described the negotiations as “very tough” but said the agreement “will bring stability and predictability” for businesses on both sides of the Atlantic.
The framework also includes pharmaceuticals, the top U.S. import from the EU, prompting Trump to underscore the need for domestic production. “We can’t be in a position where we’re relying on other countries,” he said.
The breakthrough came just days before a looming deadline that would have triggered 30% tariffs on EU imports. Trump had previously floated levies as high as 50% on European goods and 200% on pharmaceuticals manufactured abroad.
While the deal still requires final ratification, it signals a major shift in U.S.-EU trade relations, providing both sides with breathing room as Washington prepares for upcoming negotiations with China. Treasury Secretary Scott Bessent will meet Chinese officials this week, with another critical deadline approaching on August 12.
