The United States and the European Union reached a trade agreement. The United States imposed a 15% tariff on the European Union

US President Donald Trump and European Commission President Ursula von der Leyen jointly announced on Sunday (July 27) that the United States and the European Union have reached a framework trade agreement.

The United States will impose a 15% tariff on most EU imports, including automobiles, which is half of the 30% tariff previously threatened by Trump. The EU will increase its investment in the US by 600 billion US dollars, purchase US energy and defense purchases, etc.

According to reports from The New York Times and Reuters, an hour after their meeting at the Turnberry Golf Course in South Ayrshire, Scotland, Trump and von der Leyen disclosed the details of the trade agreement to the media.

Trump said that the EU has agreed to purchase US energy products worth 750 billion US dollars. Von der Leyen told reporters that the deal would be completed over three years.

Trump said that the EU also agreed to increase its investment in the US by 600 billion US dollars on the existing basis and purchase US military equipment. I think this is the biggest deal ever.

Von der Leyen said, "We have reached a trade agreement with the world's largest economy. This is a major deal that will bring us stability and predictability."

Trump: The 15% direct tariff does not apply to steel and aluminium

The key parts of the US-EU agreement are similar to the framework agreement reached by Trump with Japan last week. Trump said, "We unanimously agreed to impose a 15% direct tariff on automobiles and all other goods." However, this rate does not apply to steel and aluminium, which will still be subject to a 50% tariff, although von der Leyen said that tariffs on steel and aluminium will be reduced and replaced by a quota system.

Von der Leyen said that the 15% tariff rate also applies to semiconductors and pharmaceuticals. Neither side will impose tariffs on aircraft and aircraft components, specific chemicals, specific generic drugs, semiconductor equipment, some agricultural products, natural resources and key raw materials.

She said, "We will continue to strive and add more products to this list." She also said that it was still to be determined regarding spirits.

The agreement reached between the United States and the European Union does indeed bring a clear prospect to EU enterprises, but compared with the zero-tariff agreement initially sought by the EU, a 15% tariff rate is still a bad outcome for many Europeans, although it is better than the 30% tariff threatened by Trump.

Trump recently hinted that the equivalent tariffs imposed by the United States on most of its global trading partners would not be lower than 15%, which is higher than the 10% lower limit he previously set.

German Chancellor Merz welcomed the trade deal reached between the EU and the US. In a statement, he said the agreement avoided a trade war that would otherwise have dealt a heavy blow to Germany's export-oriented economy and its huge automotive industry.

However, Lange, the chairperson of the European Parliament's International Trade Committee, expressed great dissatisfaction because of the imbalance in tariffs between the two sides, and the EU's commitment to increase investment by 600 billion US dollars in the United States is likely to cost EU industries.