U.S., EU Strike Tariff Deal, Sidestep Trade War

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U.S., EU Strike Tariff Deal, Sidestep Trade War
July 28th, 2025

The U.S. and European Union established a trade agreement which imposes 15% tariffs on most EU exports entering the U.S. market to prevent a complete transatlantic trade war. The agreement between President Donald Trump and European Commission President Ursula von der Leyen in Scotland established a 15% tariff system which reduced previous threatened duties while ending months of difficult negotiations.

The agreement received praise from Trump because the EU committed to spending $600 billion in the U.S. and buying $750 billion worth of American defense and energy products. The agreement between these two major economies functions as a stabilizing force according to European Commission President Ursula von der Leyen.

EU lawmakers expressed their dissatisfaction with the 15% tariff rate because they had advocated for zero-tariff terms. The agreement preserves higher steel and aluminum tariffs but includes exemptions for aircraft together with semiconductor equipment and particular chemical products.

The agreement provides European exporters including Airbus and Mercedes-Benz and Novo Nordisk with relief but its broad nature creates space for different interpretations. A U.S. official stated that the tariff rate will increase if EU investment commitments do not meet their targets.

The euro experienced a slight increase in value after the announcement because investors welcomed the decrease in trade tensions. Additional discussions will take place to address outstanding disagreements.

Mirian Gerling

Mirian Gerling is an expert journalist specializing in environmental issues, public health, and scientific innovation. Known for her clear and insightful reporting, she focuses on making complex topics accessible while highlighting the human stories behind global challenges.

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