President Donald Trump on Sunday announced a sweeping trade deal with the European Union. The agreement will send hundreds of billions of dollars into the U.S. economy, expand American energy exports, and impose a flat 15% tariff on European goods, including automobiles.
The deal was unveiled during a joint press conference at Trump Turnberry in Scotland. Trump spoke alongside European Commission President Ursula von der Leyen following a private meeting.
Under the new framework, the EU will purchase $750 billion in American energy products. Trump also said Europe will invest another $600 billion into the U.S. economy. In addition, the EU has committed to buying “a vast amount of military equipment.”
“We don’t know what that number is,” Trump said. “But it will be in the hundreds of billions of dollars.”
The United States will keep its 50% tariffs on European steel and aluminum. At the same time, it will introduce a 15% tariff on all EU imports, including cars and other goods.
“So we have a tariff of 15%,” Trump said. “We have the opening up of all of the European countries, which I think I could say were essentially closed.”
“I mean, you weren’t exactly taking our orders, you weren’t exactly taking our agriculture,” he added. “But for the most part, it was closed, and now it’s open.”
Von der Leyen called the deal a necessary “rebalancing” of the trade relationship. “The starting point was an imbalance, a surplus on our side and a deficit on the U.S. side,” she said.
“We wanted to rebalance the trade relation,” she continued. “Because the two biggest economies should have a good trade flow between us.”
She said the deal would “mean good jobs on both sides of the Atlantic.” It would also bring “prosperity on both sides.”
The euro rose to $1.18 early Monday after news of the deal. Investor confidence grew as a result.
Analysts said the agreement brings stability and new opportunities. “Now that there is more clarity, you would think that… there will be a little bit more willingness to look at investment,” said Rodrigo Catril, senior currency strategist at National Australia Bank.
He added that businesses would now feel ready “to look at expansions, and to look at where the opportunities are.”
The EU’s decision to make concessions came after pressure from its own member states. German Chancellor Friedrich Merz urged Brussels to strike a quick agreement.
“It would be better to be quick and easy than lengthy and complicated and still in negotiating status for months,” Merz said.
In 2024, total trade between the U.S. and EU in goods and services topped €1.68 trillion, about $1.8 trillion. This represents nearly 30% of global trade and over 40% of global GDP.
That makes the U.S.-EU trade relationship the largest bilateral trading partnership in the world.
The new deal follows a similar framework reached last week between Trump and Japan. Tokyo agreed to invest $550 billion in the U.S. and accept the same 15% tariff on its exports.
Meanwhile, U.S. officials are preparing to meet Chinese counterparts in Stockholm. They are expected to extend a trade truce before the August 12 deadline.
No major breakthrough is likely in the China talks. But analysts expect a 90-day extension of the truce agreed back in May.
As Trump continues reshaping global trade, the EU deal marks a major win. “This agreement puts America First,” Trump said. “And brings fairness back to our trade relationships.”