In a high-stakes breakthrough, the United States and European Union on Sunday announced a sweeping trade agreement to avert a looming tariff showdown. President Donald Trump hailed it as the “biggest-ever” deal, reached after an hour-long meeting with European Commission President Ursula von der Leyen at his Scottish golf resort.

The agreement sets a uniform 15% tariff on all EU exports to the US, avoiding a planned 30?ross-the-board levy that was set to begin August 1. Trump said the deal "brings fairness" and secures massive EU commitments—$750 billion in US energy purchases and $600 billion in additional investments.

Von der Leyen called it a “significant” pact that ensures predictability for transatlantic businesses. Key exemptions were granted on strategic products including aircraft, agricultural goods, certain chemicals, and critical raw materials. Further "zero-for-zero" tariff agreements are expected soon, notably on alcohol.

The EU will also increase purchases of American liquefied natural gas, oil, and nuclear fuels over the next three years, a move von der Leyen linked to reducing reliance on Russian energy.

Though the 15% tariff is higher than the previous average of 4.8%, von der Leyen said it was “the best we could get” under pressure. She confirmed that steel imports would follow a quota system, despite Trump suggesting current steel tariffs would remain unchanged.

EU member states were briefed in Greenland and will now review the deal. German Chancellor Friedrich Merz welcomed the agreement, but industry groups warned of potential economic fallout.

Had negotiations failed, the EU was poised to retaliate with $109 billion in counter-tariffs. Trump, meanwhile, hinted this was his “biggest” trade achievement, signaling that other countries must now come to the table before the August 1 deadline.

In a high-stakes breakthrough, the United States and European Union on Sunday announced a sweeping trade agreement to avert a looming tariff showdown. President Donald Trump hailed it as the “biggest-ever” deal, reached after an hour-long meeting with European Commission President Ursula von der Leyen at his Scottish golf resort.

The agreement sets a uniform 15% tariff on all EU exports to the US, avoiding a planned 30?ross-the-board levy that was set to begin August 1. Trump said the deal "brings fairness" and secures massive EU commitments—$750 billion in US energy purchases and $600 billion in additional investments.

Von der Leyen called it a “significant” pact that ensures predictability for transatlantic businesses. Key exemptions were granted on strategic products including aircraft, agricultural goods, certain chemicals, and critical raw materials. Further "zero-for-zero" tariff agreements are expected soon, notably on alcohol.

The EU will also increase purchases of American liquefied natural gas, oil, and nuclear fuels over the next three years, a move von der Leyen linked to reducing reliance on Russian energy.

Though the 15% tariff is higher than the previous average of 4.8%, von der Leyen said it was “the best we could get” under pressure. She confirmed that steel imports would follow a quota system, despite Trump suggesting current steel tariffs would remain unchanged.

EU member states were briefed in Greenland and will now review the deal. German Chancellor Friedrich Merz welcomed the agreement, but industry groups warned of potential economic fallout.

Had negotiations failed, the EU was poised to retaliate with $109 billion in counter-tariffs. Trump, meanwhile, hinted this was his “biggest” trade achievement, signaling that other countries must now come to the table before the August 1 deadline.