Trump reaches 15% tariff trade agreement with European Union

President Donald Trump announced a new trade agreement with the European Union on Sunday, halving steep tariffs but potentially hiking consumer prices.

President Donald Trump announced a new trade agreement with the European Union on Sunday, halving steep tariffs but potentially hiking consumer prices.

This deal cuts tariffs in half on both sides, but will likely still mean higher prices for consumers, as the US will be taxing most goods that come from the European Union at 15%. Last year alone, the value of US trade with the EU was nearly $1 trillion and while traveling in Scotland this weekend, President Trump announced the deal alongside the President of the European Commission, which will likely lead to Costs on top EU imports like medicine, pharmaceuticals, semiconductors, and cars. In addition, the government has agreed to some side deals. The EU will invest $750 billion in US energy and buy more American military equipment. It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic. I think the people of Europe will have some diversification. I think that will make them happy. So I think maybe cars would be the one that would go the biggest and the second would be agriculture, the farmers. There are some exceptions including 0 for zero tariffs on all aircraft and parts, certain chemicals, generic drugs, some agricultural products, and raw materials. But this deal is just *** rough outline. EU members still have to approve it. In Washington, I'm Amy Lo.

Updated: 7:31 AM CDT Jul 28, 2025

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Trump reaches 15% tariff trade agreement with European Union

President Donald Trump announced a new trade agreement with the European Union on Sunday, halving steep tariffs but potentially hiking consumer prices.

Updated: 7:31 AM CDT Jul 28, 2025

Editorial Standards ⓘ

President Donald Trump announced a new trade agreement with the European Union on Sunday, days before new tariffs are set to take effect this Friday. The deal, which will likely raise consumer prices, taxes most EU goods at 15%. While traveling in Scotland, Trump announced the deal alongside European Commission President Ursula von der Leyen. The agreement will apply to top imports from the EU, such as medicine, pharmaceuticals, semiconductors and cars. So far, the deal is just a rough outline and still needs approval from EU members."It will bring stability. It will bring predictability," von der Leyen said. "That's very important for our businesses on both sides of the Atlantic." The agreement includes exceptions such as zero-for-zero tariffs on aircraft and parts, certain chemicals, generic drugs, some agricultural products, and raw materials. Additionally, the EU will invest $750 billion in U.S. energy and purchase more American military equipment. "I think the people of Europe will have some diversification. I think that will make them happy," Trump said. "So I think maybe cars would be the one that would go the biggest, and the second would be agriculture, the farmers."Meanwhile, a major U.S. trade deal with China has yet to be reached. Treasury Secretary Scott Bessent is meeting with Chinese trade officials Monday in Sweden for a third round of negotiations. The U.S. is currently taxing Chinese imports at 30%, and talks are expected to extend current tariffs past an Aug. 12 deadline. Possible other topics that will be touched on include Chinese factory overproduction, fentanyl, and Russian and Iranian oil. The tone of the talks could lead to a summit between Trump and Chinese President Xi Jinping later this year.Trump is also set to meet with British Prime Minister Keir Starmer on Monday while in Scotland, but trade is not expected to be the focus, as the U.K. is not part of the EU. The two countries have already worked out a trade framework, lowering tariffs on airplanes and cars and raising American beef exports. Instead, discussions are likely to center on global conflicts in Gaza and Ukraine. Starmer is visiting Trump at one of his golf resorts in Scotland, where the president is opening a new course Tuesday.Watch the latest on U.S. trade deals and tariffs:

WASHINGTON —

While traveling in Scotland, Trump announced the deal alongside . The agreement will apply to , such as medicine, pharmaceuticals, semiconductors and cars. So far, the deal is just a rough outline and still needs approval from EU members.

"It will bring stability. It will bring predictability," von der Leyen said. "That's very important for our businesses on both sides of the Atlantic."

The agreement includes exceptions such as zero-for-zero tariffs on aircraft and parts, certain chemicals, generic drugs, some agricultural products, and raw materials. Additionally, the EU will invest $750 billion in U.S. energy and purchase more American military equipment.

"I think the people of Europe will have some diversification. I think that will make them happy," Trump said. "So I think maybe cars would be the one that would go the biggest, and the second would be agriculture, the farmers."

Meanwhile, a major U.S. trade deal with China has yet to be reached. is meeting with Chinese trade officials Monday in Sweden for a third round of negotiations. The , and talks are expected to extend current tariffs past an Aug. 12 deadline. Possible other topics that will be touched on include Chinese factory overproduction, fentanyl, and Russian and Iranian oil. The tone of the talks could lead to a summit between Trump and Chinese President Xi Jinping later this year.

Trump is also set to meet with on Monday while in Scotland, but trade is not expected to be the focus, as the U.K. is not part of the EU. The two countries have already worked out a trade framework, lowering tariffs on airplanes and cars and raising American beef exports. Instead, discussions are likely to center on global conflicts in Gaza and Ukraine. Starmer is visiting Trump at one of his golf resorts in Scotland, where the president is opening a new course Tuesday.

Watch the latest on U.S. trade deals and tariffs:

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