Agreement Reached in EU–US Customs Dispute

In an unexpected move, U.S. President Donald Trump and European Commission President Ursula von der Leyen reached a trade agreement on Sunday at Trump’s residence in Scotland, avoiding a full-scale tariff war. Under the deal, a flat 15% tariff will be imposed on most EU exports to the U.S.—significantly lower than the 30% tariff previously threatened by Trump.

The United States will apply the uniform 15% tariff to the majority of imports from the EU, including automobiles. As a result, the European automotive industry will benefit from a notable reduction compared to the 27.5% tariffs imposed by the U.S. since April. However, higher duties will remain in place for certain products: the punitive global tariffs of 50% on steel and aluminum will continue. Pharmaceuticals are exempt from the 15% tariff.

In return, the European Union has committed to importing $750 billion worth of energy from the U.S. and investing $600 billion in the American economy. Although efforts to lift the 50% U.S. tariff on steel were unsuccessful, the agreement provides stability for key sectors such as pharmaceuticals, chemicals, and semiconductors. Von der Leyen described the deal as “the best possible outcome.”

Source: Euronews, Handelsblatt