US President Donald Trump and European Commission President Ursula von der Leyen have announced a trade deal following crunch talks at Trump's Turnberry golf resort in Scotland. The agreement imposes a 15% baseline tariff on most EU exports to the US, half the 30% rate Trump had threatened if negotiations collapsed.
Von der Leyen described the deal as 'a big deal, a huge deal' that would bring stability and predictability to both sides. Trump called it 'a powerful deal' and an 'important' partnership. The agreement also includes EU commitments to buy $750bn (£560bn) of US energy products and invest $600bn (£446bn) in the US over three years.
However, a 50% tariff remains on steel exports, a setback for that industry. Pharmaceuticals are included at 15%, though Trump initially suggested they were excluded. Zero tariffs will apply to aircraft, certain chemicals, semiconductor equipment, and some agricultural products.
German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy. Italian Prime Minister Giorgia Meloni called it 'positive' but said she needed to see the details. EU Trade Commissioner Maroš Šefčovič acknowledged the 15% rate was worse than the pre-Trump average of 4.8%, but stressed the importance of predictability for businesses.
