US President Donald Trump announced on Sunday that a framework trade agreement had been reached between the United States and the European Union. The negotiations took place in Turnberry, Scotland, with the participation of European Commission President Ursula von der Leyen. According to Trump, this agreement is the “biggest deal ever made” in terms of scale.
Under the agreement, the European Union has committed to purchasing $750 billion worth of American energy and investing another $600 billion in the US economy. In addition, the EU plans to purchase “significant amounts” of American military equipment.
The deal allowed the EU to avoid 30% tariffs that were supposed to take effect on August 1. However, the US will still impose a 15% tariff on most goods imported from Europe, including cars. Previously, the rate on imports of cars and auto parts from the EU was 25%.
In turn, the EU will open access to American exports by setting zero tariffs, Trump said. He reiterated that he considers the deal “the biggest ever.” Ursula von der Leyen noted that the agreement will bring stability to the market and ensure predictability.
Europe’s mixed response
US Trade Minister Howard Lutnick said that a decision on tariffs on European semiconductors and pharmaceutical products would be made within two weeks.
EU Trade Commissioner Maros Šefčovič described Trump as a “tough negotiator” and noted the tense atmosphere during the dialogue.
German Chancellor Friedrich Merz welcomed the agreements reached, emphasising that they had helped to avoid a serious trade conflict that could have negatively affected Germany’s export-oriented economy, especially in the automotive sector.
Nicolas Dupont-Aignan, leader of the party Debout la France (France Arise), wrote on X:
“The complete defeat of the European Union, which agrees to asymmetrical customs duties with the United States, commits to buying more and more weapons and gas overseas, and once again sacrifices French agriculture. Where is Macron? #EU IS KILLING US, LET’S FREE OURSELVES!”
Negotiations on the deal began in the spring after Trump threatened to impose “reciprocal” tariffs on nearly 200 countries, including a 20% tariff on goods from the EU. The US had already imposed 25% tariffs on European steel and aluminium, which were subsequently increased.
According to Trump, the main obstacle to reaching an agreement was the issue of fairness in trade. He has repeatedly accused the EU of trade imbalances, emphasising that Europe restricts access to American goods, including cars and agricultural products, while exporting millions of cars to the US every year. “This will no longer be the case — trade must be fair and reciprocal,” the president stressed.
Trump also hinted at possible progress in trade negotiations with China. On the same day, the South China Morning Post reported that Washington and Beijing were preparing to announce a 90-day extension of the moratorium on new tariffs in order to continue negotiations until August 12.
