President Donald J. Trump “rolled over” the European Union (EU) in a historic trade deal—unlocking billions in energy purchases, investment, and military sales while locking in higher tariffs on European imports.
The details: Following a 75-minute private meeting in Scotland with European Commission President Ursula von der Leyen, Trump unveiled the outline of their preliminary agreement, which includes:
- EU tariffs on U.S. imports drops to zero
- 15 percent tariffs on most EU goods entering the U.S.
- $750B in U.S. energy purchases from the EU
- $600B in new European investment into the U.S.
- EU will buy “hundreds of billions” in U.S. military equipment
Exclusions: Trump kept steel and aluminum tariffs at 50 percent, and pharma is not part of the deal.
President Trump, sitting beside von der Leyen, told the press:
- “I think it’s great that we made a deal today instead of playing games and maybe not making a deal at all… I think it’s the biggest deal ever made.”
Zoom out: The deal comes just days before Trump’s August 1 deadline, which would have seen steep tariffs—including 30 percent on autos and 200 percent on pharma—levied against EU imports to the U.S.
Back up: Trump has said the EU was “formed to screw the U.S.” and “nastier than China”.
What the Europeans are saying: An article for the Financial Times titled “How the EU succumbed to Trump’s tariff steamroller,” concluded:
- “There is no hiding the fact the EU was rolled over by the Trump juggernaut, said one ambassador. ‘Trump worked out exactly where our pain threshold is.’”
Big picture: Since beginning his second term, Trump has sought to reset the United States’ relationship with Europe in trade and defense. He’s gotten NATO allies to agree to increase defense spending to five percent, signed a historic trade deal with the UK, and now a trade deal with the EU.