The agreement between the European Union and the United States on tariffs has been reached: the base tariff for the EU will be 15%, not 30%, as previously threatened. But Europe will have to invest $600 billion in the US and purchase $150 billion in energy and weapons from Washington. Everything remains unchanged regarding trade in steel and aluminum – for which the tariff is confirmed at 50% – and the pharmaceutical sector remains outside the agreement.
The white smoke came during a meeting between President Ursula von der Leyen and Donald Trump in Turnberry, Scotland. “We have reached a result that is satisfactory for both sides, it will bring us closer,” the tycoon commented as he left the meeting. “Furthermore,” he added, “it will be excellent for the automotive sector and will have a significant impact on agriculture.” “These were challenging negotiations, I knew it from the start and it was really difficult, but we reached a good conclusion,” von der Leyen declared. “The agreement,” she added, “will give us stability again.”
Even before meeting with the President of the European Commission, Trump had laid out the guidelines for the trade agreement. Meanwhile, in the afternoon, a statement released to Fox News by US Secretary of Commerce Howard Lutnick reiterated the US's intention not to grant the Union any extension."Customs," Lutnick declared,"will begin collecting the money starting August 1st. There will be no thanks, no thanks, for anyone."
The EU delegation also included the European Commissioner for Trade and Economic Security, Maros Sefcovic, as well as Björn Seibert, Sabine Weyand, and Tomas Baert."This is the largest agreement ever reached," said von der Leyen. The president of the EU executive emphasized the size of the trade volume between the EU and the US:"The largest globally, with $1.7 trillion" in trade, and a combined market of 800 million people.
Optimism had been filtering through Washington since the afternoon. Lutnick said,"Trump is always willing to negotiate and engage with major economies." The US president reiterated the excellent relationship his country has had over the years with the European Union, but emphasized how, in his opinion, it has been"unfair" so far."These have been years of very unilateral transactions," he said."And I believe both sides want to see fairness. Ursula von der Leyen has done a truly excellent job and is highly regarded by us too." Regarding the pharmaceutical sector, he confirmed that it will not be part of the agreement:"We have to produce them in the United States. We cannot find ourselves in a position where we have to depend on other countries,” he said. The risk of a trade war was thus averted. The EU was ready to react with tariffs on hundreds of US products, from beef to auto parts, from beer to Boeing airplanes, from French cheese to Italian leather goods and German electronics.
Trump's five-day visit to Scotland was organized by the president to promote a new golf course, one of the properties that bear his name. But this time slot also included a meeting with von der Leyen, ahead of the August 1 deadline he set for the tariffs. Tomorrow, July 28, again in Turnberry, Trump is scheduled to meet with British Prime Minister Keir Starmer, while on July 29, the US president will be in Aberdeen, in northeastern Scotland, where his family owns another golf course and will open a third next month. The president and his children plan to attend the ribbon-cutting ceremony for the new course. The United States and the United Kingdom announced a framework trade agreement in May and a broader agreement last month during the G7 summit in Canada. Trump says the deal is done and that he and Starmer will discuss other matters, although the White House has suggested it still needs to be refined.
