Report EU and US Strike Blockbuster Deal: 15% Tariffs on EU Exports

[webfact]

 

video screenshot

 

The United States and the European Union have inked a new trade deal, putting an end to a long-standing standoff between the economic giants. President Donald Trump and European Commission President Ursula Von der Leyen met in Scotland, agreeing on a 15% US tariff on EU goods, half of the previously threatened 30% rate.

 

Trump has been using tariffs to reshape global trade and reduce the US trade deficit. Besides the EU, he has reached tariff agreements with the UK, Japan, Indonesia, and others. Following negotiations at Trump’s Turnberry golf course, he heralded the deal as beneficial for all, aiming to bring the US and EU closer together.

 

Von der Leyen praised the agreement, emphasising its role in stabilising relations between allies that account for nearly a third of global trade. The EU plans to invest over $600bn in the US, including the military and energy sectors. This, she claims, will decrease Europe's reliance on Russian power sources.

 

Some products, like aircraft and certain agricultural goods, will not face tariffs. Meanwhile, Trump's 50% global tariff on steel and aluminium remains unchanged. The deal is also expected to generate an estimated $90bn in tariff revenue for the US.

 

Despite the positives for America, the EU’s gains are less clear, although avoiding steeper tariffs is a relief. Von der Leyen spoke of "rebalancing" trade relations, previously arguing that services purchased from the US tip the scales in favour of equitable trade.

 

Trade between these giants totalled about $976bn last year, with the US importing more from the EU. This trade imbalance frustrates Trump, who argues that such dynamics equate to US losses.

 

If the steep tariffs had taken effect, EU goods, ranging from Spanish pharmaceuticals to French cheese, would have been subject to heavy duties. The EU had threatened retaliatory tariffs on US exports like cars and beef.

 

European leaders cautiously welcome the deal. Ireland’s prime minister noted that tariffs, although lower than threatened, still complicate trade. Germany’s Chancellor highlighted the benefits of stable trade relations.

 

British Prime Minister Keir Starmer plans a meeting with Trump, and the US president is set for a busy schedule, including opening a new golf course in Aberdeen.

 

  Adapted by ASEAN Now from BBC 2025-07-29

 

 

[koolkarl]

Dysfunctional euro zone loses big time.  And poor Ursala needs a new set of teeth.  

[klauskunkel]

5 hours ago, webfact said:

with the US importing more from the EU. This trade imbalance frustrates Trump, who argues that such dynamics equate to US losses.

Another argument might be that European Goods and Services are more popular in the US than their equivalent in the EU. There might be an opportunity here to focus on Quality and Brand improvement to address that imbalance...

In Bill Burr's words: make your $hit better and cheaper, then they will buy more of your $hit.

But what do I know.

[spidermike007]

This deal may not get approved by the member nations. France and Germany are quite unhappy at the EU capitulation and surrender to the bully. 

[thaibreaker]

Remind me again on who is actually paying this tariff in the end?

Right, the American consumers. 

[thaibreaker]

14 minutes ago, spidermike007 said:

This deal may not get approved by the member nations. France and Germany are quite unhappy at the EU capitulation and surrender to the bully. 

As they should be. It's embarrassing to watch how the European leaders are just sitting next to DT, like obedient puppets.

 

It has only been two leaders daring to speak their mind and stand up to this bully in the WH, that's the French president Macron, and Zelenskyy.

[thaibreaker]

1 hour ago, koolkarl said:

Dysfunctional euro zone loses big time.  And poor Ursala needs a new set of teeth.  

There are no winners in this tariff nonsense. All parties lose.

[JonnyF]

Great job Don.

 

And everyone who voted Brexit. 

[spidermike007]

1 hour ago, thaibreaker said:

As they should be. It's embarrassing to watch how the European leaders are just sitting next to DT, like obedient puppets.

 

It has only been two leaders daring to speak their mind and stand up to this bully in the WH, that's the French president Macron, and Zelenskyy.

Agreed. And it is a beautiful thing to watch a leader stand up to highly arrogant, ignorant bully, and tell him like it is. 

 

What he doesn't seem to realize is that America is becoming less relevant by the day, and he's helping to precipitate that irrelevance. 

 

 

[FritsSikkink]

1 hour ago, thaibreaker said:

As they should be. It's embarrassing to watch how the European leaders are just sitting next to DT, like obedient puppets.

 

It has only been two leaders daring to speak their mind and stand up to this bully in the WH, that's the French president Macron, and Zelenskyy.

Deal is a joke, EU leader: we will buy more USA cars.

They don't decide what EU consumers buy.

[John Drake]

2 hours ago, klauskunkel said:

Another argument might be that European Goods and Services are more popular in the US than their equivalent in the EU. There might be an opportunity here to focus on Quality and Brand improvement to address that imbalance...

In Bill Burr's words: make your $hit better and cheaper, then they will buy more of your $hit.

But what do I know.

 

Here are the top 10 bestselling cars in the world. Three of them are American. Only one, at number 10, is European (German). https://www.statista.com/statistics/239229/most-sold-car-models-worldwide/

[klauskunkel]

3 minutes ago, John Drake said:

 

Here are the top 10 bestselling cars in the world. Three of them are American. Only one, at number 10, is European (German). https://www.statista.com/statistics/239229/most-sold-car-models-worldwide/

Well, then why is there an imbalance?

Maybe, it's not just cars?

[John Drake]

6 minutes ago, klauskunkel said:

Well, then why is there an imbalance?

Maybe, it's not just cars?

 

I'm not sure there is as much of an imbalance as Trump howls about. US services seem to enjoy a sizable surplus, while Europe does well with things such as pharma and machinery. I actually oppose tariffs on the EU and think the existing trade framework is fine and prosperous for both the EU and the US. Where I disagree is the assumption that the US produces inferior products. It's clearly not the case. I know I would never want a Mercedes or BMW, for example, because they are over-engineered, expensive to repair and overly complex. In fact, my wish is for a return to an automobile that is basic, functional, rugged, and efficient, without all the electronics. I just need a/c and a radio.

[blazes]

Trump (and his country) is laughing all the way to the bank....

[transam]

1 minute ago, blazes said:

Trump (and his country) is laughing all the way to the bank....

............to his bank................😂

[FritsSikkink]

21 minutes ago, John Drake said:

 

Here are the top 10 bestselling cars in the world. Three of them are American. Only one, at number 10, is European (German). https://www.statista.com/statistics/239229/most-sold-car-models-worldwide/

In EU a bit different: https://www.best-selling-cars.com/europe/2024-full-year-europe-top-50-best-selling-car-models/

[FritsSikkink]

4 minutes ago, blazes said:

Trump (and his country) is laughing all the way to the bank....

You still don't understand that those taxes are paid by the USA consumers / businesses.