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US-EU tariff deal a big Trump win but not a total defeat for Brussels

July 28, 2025

The European Union and the United States have reached a framework trade agreement following tense negotiations, with both leaders directly involved in finalizing the deal. Under the agreement, the EU will face a 15% US tariff rather than the threatened 30%, though this still represents a significant increase from pre-April rates. The deal includes the EU opening its markets to American exports at zero tariff, committing to purchase US energy products and arms worth hundreds of billions of dollars, and boosting investment in the US by $600 billion.

Who is affected

  • European Union businesses and exporters
  • US exporters and manufacturers
  • EU carmakers facing 15% US import tax (instead of 25%)
  • EU steel and aluminum exporters (continuing to face 50% US tariffs)
  • European and American businesses dependent on the "world's largest bilateral trade and investment relationship"
  • The 27 EU member countries collectively
  • US government (receiving expected $90 billion in tariff revenue)

What action is being taken

  • The EU is accepting a 15% US tariff on its exports
  • The EU is opening its markets to American exports with zero tariffs
  • The EU is committing to purchase US energy products worth $750 billion
  • The EU is boosting investment in the US by $600 billion, including American military equipment
  • The US and China are currently holding trade talks (their third round in three months)

Why it matters

  • The agreement preserves the "world's largest bilateral trade and investment relationship"
  • It removes some economic uncertainty for the EU, which has been experiencing sluggish growth
  • The deal represents another major victory for Trump's trade agenda
  • It's expected to generate approximately $90 billion in tariff revenue for the US government
  • The agreement addresses the US-EU trade deficit, which was $236 billion last year
  • It demonstrates Trump's seriousness about renegotiating how the US conducts international trade

What's next

  • Expectations are growing that higher tariffs between the US and China could be suspended for another 90 days based on ongoing trade talks
  • Potential additional trade agreements with Mexico, Canada, and China are still on the table

Read full article from source: BBC