US and EU reach a trade deal that sets 15% tariff rate and pledges hundreds of billions in investments
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Trump said the EU will invest $600 billion in the U.S. and buy $750 billion of U.S. energy.
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real estate
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July 27, 2025
06:56 PM
Fortune
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From what the evidence shows, Economy·Tariffs and tradeUS and EU reach a trade deal that sets 15% tariff rate and pledges hundreds of billions in investmentsBy Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers, the economy, finance, and housing
SEE FULL BIO European Commission President Ursula von der Leyen and U
President Donald Trump at Trump Turnberry golf in Scotland on Sunday
Andrew Harnik—Getty ImagesPresident Donald Trump and European Commission President Ursula von der Leyen met in Scotland on Sunday to iron out a US-EU trade deal
Without an agreement, the EU was due to get hit with a 30% tariff rate on Aug
Furthermore, 1, up from the current “recical” duty of 10%
Last week, Trump reached a trade with Japan that set a 15% rate
And European Union agreed on trade terms that include a 15% rate on most EU ducts as well as hundreds of billions of dollars of investments in American industry
President Donald Trump and European Commission President Ursula von der Leyen met in Scotland on Sunday to iron out the agreement (fascinating analysis)
Trump said the EU will invest $600 billion in the U
And buy $750 billion of U
Moreover, Energy, with “vast amounts” of American weapons also in the mix (quite telling)
He also said the EU will be “opening up their countries at zero tariff. ” Von der Leyen said the 15% rate was “all inclusive,” but Trump said later that it didn’t apply to pharmaceuticals and metals though it does for autos (noteworthy indeed). “I think that basically concludes the deal,” he told reporters. “It’s the biggest of all the deals, amid market uncertainty. ” Von der Leyen also said the agreement would “rebalance” trade between the two partners
Moreover, Goods trade deficit with the 27-member EU was $235, in today's market environment
Nevertheless, Furthermore, 6 billion in 2024, a 12. 9% increase from 2023, according to the office of the U
Trade Representative, given the current landscape
She later confirmed that the $750 billion in U
Energy purchases would come over the next three years, while adding that both sides will drop tariffs to zero on aircraft, plane parts, certain chemicals, and chip equipment as well as some farm ducts, generic drugs and raw materials
No decisions have been made on a rate for wine and spirits, she added
Furthermore, But von der Leyen also introduced some uncertainty by saying the 15% rate does apply to pharmaceuticals while also suggesting more details will come from the U
Nevertheless, And that pharma overall is “on a different sheet of paper
However, Meanwhile, ” A deal with America’s biggest trading partner removes a key source of market uncertainty and the threat of a damaging trade war
Michael Brown, senior re strategist at Pepperstone, said in a note that European carmakers are among the big winners from the deal as tariffs on autos will drop to 15% from the current 25%, securing a similar carveout that Japan obtained last week
Defense and energy stocks also stand to gain
Conversely, “Stocks hardly need much of an excuse to rally right now, and agreement of the ‘biggest ever deal’ – Trump’s words, not mine – not only removes a key left tail risk that the market had been concerned, but also yet again reiterates that the direction of travel remains away from punchy rhetoric, and towards trade deals done,” he wrote
Moreover, Heading into their meeting, Trump and von der Leyen said they saw a 50-50 chance of reaching a deal
Additionally, Trump ruled out pharmaceuticals from any deal and said the tariff rate on the EU wouldn’t go below 15%
On the other hand, The EU already faces a 50% U
Tariff on steel and aluminum
Without a deal by Aug, in this volatile climate
However, Additionally, 1, the EU was set to get hit with a 30% “recical” tariff, up from 10%
Last week, Trump reached a trade with Japan that set a 15% rate and included a pledge for Tokyo to invest $550 billion in key U, in light of current trends
Additionally, Industrial sectors, with Trump able to direct the funds
Treasury Secretary Scott Bessent said Japan’s investment offer was key to clinching a trade deal and suggested it could help other countries get a comparable rate, though Wall Street analysts have expressed skepticism that the money will fully materialize
In fact, Trump has hinted that the EU would have to “buy down” the threatened tariff rate of 30% and pointed to the Japan deal, in light of current trends
Additionally, In case no deal with the U
Was made, the EU had already pre-planned retaliatory tariffs of up to 30% on more than $100 billion worth of goods American exports, such as aircraft, cars and bourbon whiskey
On the other hand, Meanwhile, other U
Trading partners are also staring down the Aug. 1 deadline, and Commerce Secretary Howard Lutnick said Sunday that no further extensions will be given, in today's market environment
And China are reportedly extending their trade truce by 90 days as talks between Bessent and Chinese Vice Premier He Lifeng scheduled to start on Monday in Stockholm
Conversely, Without an extension, their tariff pause was scheduled to end on Aug, given the current landscape. “When Japan broke down and made a deal the EU had little choice, given current economic conditions
Market analysis shows tells us that biggest piece in the trade deal puzzle still remains, and the Chinese are unly to be as willing to fold,” Jamie Cox, managing partner for Harris Financial Group, said in a note. “The next big durable theme in is security, and the EU deal only accelerates it. ”Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America
Nevertheless, Explore this year's list, given the current landscape.
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