Who are the winners and losers in US-EU trade deal?

July 28, 2025

The US and EU have announced a historic trade agreement framework in Scotland, though specific details remain unclear. Under the deal, the US will levy a 15% tariff on goods imported from the EU, which is less than previous rates for sectors like automobiles but still represents a significant trade barrier. The agreement includes provisions for the EU to purchase $750 billion in US energy and increase overall US investment by $600 billion.

Who is affected

EU exporters, particularly German automakers (VW, Mercedes, BMW)
US consumers who may face higher prices on European goods
European pharmaceutical companies
US car manufacturers
Energy companies in both regions
Aircraft and component manufacturers
Importers of "strategic products" including certain chemicals and agricultural products

What action is being taken

The US is implementing a 15% tariff on goods imported from the EU
The EU is reducing its tariff on US-made cars from 10% to 2.5%
The EU is committing to purchase $750 billion in US energy (LNG, oil, nuclear fuels)
The EU is increasing overall investment in the US by $600 billion
Both parties are establishing zero-tariff treatment for "strategic products" including aircraft parts

Why it matters

This represents what's being called the largest trade deal in history between major economic powers
Economic analyses suggest the deal could reduce EU GDP by 0.5% while generating tens of billions in US tax revenue
The agreement shifts European energy dependency from Russia to the United States
The deal creates certainty for investors and markets after a period of trade tensions
The reduced automobile tariffs (from 27.5% to 15%) still represent significant costs for European manufacturers

What's next

The deal will need to be signed off by all 27 members of the EU
The EU hopes to secure more "zero-for-zero" agreements for specific sectors like wines and spirits in the coming days
Economic data expected later this week will show whether Trump's tariff policies are delivering economic benefits or creating challenges for the US economy

Read full article from source: BBC