President Trump claims the “biggest deal ever made” with EU after agreeing a 15% tariff framework, $750B energy purchases, and $600B investments.
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🇺🇸🇪🇺 Trump Touts ‘Biggest Deal Ever Made’ as US and EU Sketch Historic Trade Framework
TURNBERRY, SCOTLAND — President Donald Trump announced on Sunday that the United States and the European Union have reached a framework agreement for a new trade deal, aiming to end months of economic tension with America’s largest trading partner. The move comes just days before a critical deadline that could have triggered a wave of steep tariffs across key sectors.
Standing alongside European Commission President Ursula von der Leyen at his golf resort in Turnberry, Trump hailed the agreement as “the biggest deal ever made” between the two economies.
💥 Key Deal Highlights
- 15% Tariff Set: A uniform 15% tariff will apply to most EU imports to the U.S., including automobiles, pharmaceuticals, and semiconductors.
- $750 Billion Energy Purchase: The EU has committed to buying $750 billion worth of U.S. energy over the next several years.
- $600 Billion in U.S. Investment: Europe will invest an additional $600 billion into U.S.-based infrastructure, manufacturing, and defense.
“All countries will be opened up to trade with the United States at zero tariffs on select goods, and they’re agreeing to purchase a vast amount of military equipment,” Trump said.
📊 Why It Matters
Last year alone, the U.S. and EU exchanged $975 billion in goods, making the transatlantic relationship the largest bilateral trading relationship on the planet.
The new agreement comes after months of threats from the Trump administration to raise tariffs up to 50% on EU imports unless a deal was reached. The Friday deadline had global markets on edge.
⚖️ What the EU Gets in Return
European Commission President von der Leyen called the deal a step toward “stability and predictability.”
EU leaders largely welcomed the news:
- Germany’s Chancellor Friedrich Merz said it “averted a trade conflict that would’ve hurt our export-driven economy.”
- Ireland’s Taoiseach Micheál Martin praised it as “good for businesses, consumers, and investors.”
- Italy’s PM Giorgia Meloni called the deal “positive” but wants to examine details further.
💊 Pharma & Tech: Still in the Crosshairs
Despite the relief, the new 15% tariff includes pharmaceuticals, the No. 1 EU export to the U.S. — valued at $155 billion in 2024. Trump previously warned of a 200% tariff on foreign-made drugs, and while that threat is now off the table, some healthcare firms may still face pricing pressure.
“Pharmaceuticals are very special. We can’t be in a position where we’re relying on other countries,” Trump emphasized.
The U.S. is also planning additional tariffs on semiconductors, with Commerce Secretary Howard Lutnick saying those will be announced in “two weeks.”
📈 Market Reaction
Global markets rallied on the news:
- Stoxx Europe 600 Index jumped to a 4-month high
- Germany’s DAX gained 0.47%
- France’s CAC 40 surged 0.82%
Investors see the deal as reducing uncertainty and boosting long-term trade flows between two of the world’s largest economies.
⏳ What’s Next?
- Steel & aluminum tariffs will remain at 50%, despite the new EU deal.
- No extensions or grace periods will be granted after August 1, according to Lutnick.
- Countries like Brazil and South Korea are next in line, facing potential 30–50% tariffs unless they finalize deals soon.
- Meanwhile, the U.S. and China are approaching their own August 12 trade deadline, with another truce likely to be announced soon in Stockholm.
📌 Expert Reactions
Economists see the Trump-EU deal as a partial truce, not a full resolution:
“It averts disaster, but it’s still a hardline framework. We’ll see how much flexibility remains in implementation,” said Jon Lipsky, senior trade advisor at the Atlantic Council.
“Europe gave up a lot to avoid a tariff war,” added Anne Berton, senior economist at ING.
📣 Final Thoughts
Trump’s “biggest deal ever made” may not be final or fully detailed, but it marks a major shift in U.S.–EU relations and sets the tone for how Trump’s trade doctrine will evolve in the coming months. With global economies on edge, this framework may provide a crucial lifeline — or simply delay deeper confrontation.
📚 Frequently Asked Questions (FAQs)
1. What did Trump agree on with the EU?
Trump announced a 15% tariff on most EU imports and secured $750B in energy sales and $600B in investment from the EU.
2. What goods are affected by the new tariffs?
The 15% tariffs apply to cars, pharmaceuticals, semiconductors, and more.
3. Is this a final deal?
No. It’s a trade framework — specifics are still being negotiated. It avoids a larger conflict, but full ratification is pending.
4. What’s the market impact?
European and global indexes rallied. Analysts see this as reducing the risk of a full-blown trade war.
5. Will other countries face tariffs too?
Yes. Brazil and South Korea are next, and China faces an August 12 deadline.
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