It took just 75 minutes for President Trump to get what he wanted out of the European Union.
That’s how long he and European Commission President Ursula von der Leyen were away from the cameras.
When they returned, Trump was triumphant. Europe agreed to buy $750 billion in American energy products, invest $600 billion in new money in the US and purchase additional US military equipment, according to the terms of the preliminary agreement.
Tariffs on many American exports will drop to zero. Duties on most European goods coming into the US rise to 15%.
“I think it’s the biggest deal ever made,” Trump proclaimed.
The stated terms of the tariff deal appeared to be remarkably lopsided in favor of the US. Von der Leyen suggested that the only real concession from the Americans was that Trump would not impose 30% tariffs he had threatened.
The 27-member bloc is America’s biggest trading partner if taken together, with total trade hitting $1.97 trillion last year. The US trade deficit for goods was $235 billion.
The deal avoids a trade war between two economies that account for about 44% of the world’s gross domestic product — less than a week before steep “Liberation Day” were set to bite.
“I think we both wanted to make a deal,” the president said. “It’s going to bring us closer together. I think this deal will bring us very close together.”
Before announcing the agreement, both Trump and Von der Leyen put the odds at making a deal at 50-50. The European leader had flown to Scotland to meet Trump at his Turnberry golf course, where the president spent the morning playing with son Eric.
“The starting point was an imbalance — a surplus on our side and a deficit on the US side,” the EU boss said when asked about the concessions Trump made. “And we wanted to rebalance the trade relation, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic.”
Both sides also agreed to have zero-for-zero tariff rates on “a number of strategic products” such as aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, specific agriculture products, natural resources and critical raw materials, according to Von der Leyen.
Part of the arrangement also involved a European agreement to “purchase a vast amount of military equipment” from the US, though Trump noted, “We don’t know what that number is” yet.
Von der Leyen and Trump both shook hands and commended each other on the deal.
European negotiators had sought to score a 10% tariff from the US, mirroring Trump’s baseline rate against foreign countries and the preliminary trade deal he inked with the United Kingdom in May.
One of the goals for Europe was to bring down US tariffs on automobile exports. Trump imposed a 27.5% rate on autos in April. Trump predicted that American auto manufacturers and farmers would be among the happiest constituencies with the deal.
“I think maybe cars would be the one that would go the biggest, and the second would be agriculture, the farmers,” he said.
Before announcing the deal, Trump signaled that “pharmaceuticals won’t be part” of the deal he was planning because his administration is planning a more aggressive approach to reshore manufacturing in that sector. Pharmaceuticals are Europe’s largest export to the US. Trump threatened 200% tariffs on those products last month.
Trump also clarified that his steel and aluminum tariff policy is “staying the way it is,” meaning it would remain at the 50% worldwide rate that Trump announced in June.
The EU boss signaled plans to have a quota system on steel and aluminum, but didn’t elaborate.
Von der Leyen hailed Trump as a tough negotiator and dealmaker.”
“And fair,” Trump interjected.
The EU boss also characterized negotiations with the US president as “very difficult” and acknowledged the visible tension between the two before they reached the agreement.
Republican lawmakers back home quickly heralded Trump’s deal with the Europeans a significant victory.
“Another historic trade deal, another big win for America. President Trump is winning nonstop!” Rep. Ashley Hinson (R-Iowa) cheered.
Commerce Secretary Howard Lutnick, who was part of Trump’s delegation billed the deal as a significant breakthrough.
“President Trump just unlocked one of the biggest economies in the world,” he said in a statement. “The European Union is going to open its 20 Trillion dollar market and completely accept our auto and industrial standards for the first time ever.”
Stephen Miran, chairman of the Council of Economic Advisers wagged his finger at traditional economists who doubted Trump could pull off 15% tariffs on the EU without significant retaliation.
“Wrong. You owe an apology to [the president]. Another huge failure for elite consensus,” he posted on X.
Trump emphasized during his gaggle with reporters Sunday that he has no intention of delaying the Aug. 1 deadline before his customized “Liberation Day” tariffs take effect. The president previously moved that deadline twice.
So far, Trump has cut preliminary tariff deals with the UK, Vietnam, Japan, Indonesia and the Philippines. The president teased that his team recently locked down another deal, but didn’t specify which country.
He also has a variety of tariffs in place now, such as a 25% rate on automobiles, aluminum, and steel, as well as 25% on imports from Canada and Mexico that don’t comply with the United States-Mexico-Canada Agreement. He’s also recently mused about jacking up tariffs on Canada and Mexico.
Trump has also reached a tariff truce with China and given Beijing an Aug. 12 deadline to cut a broader deal.
Earlier this month, he gave Moscow an ultimatum to cut a peace deal with neighboring Ukraine within 50 days or else face 100% secondary tariffs on Russian energy — meaning levies imposed on countries that import from Russia.
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