The United States has struck a trade framework deal with Europe, imposing a 15% tariff rate on most EU exports, ending a months-long standoff between two of the world’s key economic partners.
Trump and European Commission president Ursula von der Leyen on July 27 announced the deal after a meeting that pushed the hard-fought deal over the line, following months of negotiations.
Donald Trump said the EU will invest $600 billion in the U.S., buy $750 billion of U.S. energy, and increase its purchases of US military equipment.
That investment in American liquified natural gas, oil and nuclear fuels would, Von der Leyen said, help reduce European reliance on Russian power sources. “We have more energy than anybody else. This will solve a lot of problems,” Trump noted.
“We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels,” said president von der Leyen on the deal on tariffs and trade with the United States.
“I think this is the biggest deal ever made,” Mr Trump told reporters. He also said the EU will be “opening up their countries at zero tariff.”
Both parties have agreed on zero-for-zero tariffs on a number of strategic products. This includes all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials.
As it is reported, the EU and its ally will keep working to add more products to this list.
Von der Leyen also hailed it as a “huge deal”, after months of negotiations. She acknowledged Trump’s “tough” reputation as a negotiator and a “dealmaker” to which he replied: “But fair.”
The agreement will “rebalance, but enable trade on both sides,” Ms. Von der Leyen said as she sat next to Mr. Trump and the leaders made the announcement.
The breakthrough follows months of tense back-and-forth exchanges between European officials and Trump.
