BREAKING NEWS
President Donald Trump announced Sunday that the United States has reached a new trade agreement with the European Union, following a crucial meeting with European Commission President Ursula von der Leyen just days before a planned August 1 deadline for steep tariffs.
During a press conference in Scotland ahead of the meeting, Trump described the discussions as balanced and said there was only “a 50-50 chance” of reaching an agreement at that time. He mentioned that there were “three or four sticking points” without giving specifics. After talks concluded, Trump emphasized the scale of the deal, calling it “very powerful” and “the biggest of all the deals,” underscoring its significance given that the EU is the United States’ largest trading partner.
The announcement follows Trump’s earlier warning in a letter to the EU that a 30% tariff on European exports to the U.S. would be imposed as part of a policy of “reciprocal tariffs.” Such a move had been viewed as potentially damaging to industries and economies on both sides of the Atlantic. In response, EU officials prepared potential countermeasures, including duties on a wide range of American goods and the possible use of its “Anti-Coercion Instrument.”
Negotiations centered on finding compromises, with Brussels pushing for exemptions or reduced tariffs for vulnerable sectors while appearing ready to accept broader tariffs in return. In 2024, the U.S.-EU trade relationship—covering goods and services—was valued at 1.68 trillion euros (about $1.97 trillion). The EU recorded a goods surplus but a services deficit, resulting in an overall trade surplus of about 50 billion euros with the U.S. last year.