Trump announces EU trade deal with 15% tariffs

President Donald Trump announced Sunday that the U.S. reached a commercialized woody with the European Union, pursuing pivotal discussions with European Commission President Ursula von der Leyen days earlier the Aug. 1 tariff deadline.

Trump said that the woody imposes a 15% tariff connected astir European goods to the U.S., including cars.

Some products, including aircrafts and their components, immoderate chemicals and pharmaceuticals, volition not beryllium taxable to tariffs, von der Leyen said successful a briefing aft the statement was announced. She besides said that the caller 15% tariff complaint would not beryllium added to immoderate tariffs already successful effect.

The 15% tariff complaint is little than the 30% rate Trump had antecedently threatened against the United States' largest trading partner, but higher than the 10% baseline tariffs the EU was hoping for.

Trump said that the 27-member bloc besides agreed to acquisition $750 cardinal worthy of U.S. vigor and put an further $600 cardinal worthy of investments into the U.S. supra existent levels.

He said that the bloc would besides beryllium "purchasing hundreds of billions of dollars worthy of subject equipment," but did not supply a circumstantial dollar amount.

"It's a precise almighty deal, it's a precise large deal, it's the biggest of each the deals," Trump said Sunday alongside von der Leyen.

"It's a bully deal, it's a immense deal, with pugnacious negotiations," von der Leyen said aft the meeting.

While questions stay astir the circumstantial details and timeline of the EU investments, the statement marks a pivotal infinitesimal for Trump, pursuing weeks of uncertainty surrounding the U.S.-EU commercialized talks.

Trump during a property league before his gathering with the European leader said that determination was a 50-50 chance they would scope a model of a deal.

Brussels had been preparing for a no-deal scenario if the commercialized talks devolved up of Aug. 1.

Lawmakers had approved a large bundle of counter-tariffs, which would person targeted a scope of U.S. goods. The bloc besides considered deploying the EU's "Anti-Coercion Instrument," a determination seen arsenic the trading bloc's "trade bazooka."

European leaders were speedy to applaud the statement amid alleviation that the bloc had seemingly avoided a commercialized war, but immoderate voiced caution astir the presumption of the deal.

Ireland's Prime Minister Micheál Martin said the statement "brings clarity and predictability to the trading narration betwixt the EU and the US," according to a statement.

"It does mean that determination volition present beryllium higher tariffs than determination person been and this volition person an interaction connected commercialized betwixt the EU and the US, making it much costly and much challenging," Ireland's Department of the Taoiseach said.

Still, the agreement "creates a caller epoch of stability," the connection continued.

German Chancellor Friedrich Merz welcomed the caller accord, citing the benefits it would bring to the country's car industry.

"With the statement successful the EU-US negotiations connected tariffs a commercialized conflict, which would person deed the export-oriented German system hard, has been avoided," helium said successful a statement.

"This is particularly existent for the car industry, for which the existent tariffs of 27.5% were astir halved to 15%. Especially present the speedy tariff simplification is of large significance," helium added.

Netherlands Prime Minister Dick Schoof said, successful a post connected X Sunday, that "no tariffs would person been better," but praised the European Commission for securing the champion statement possible.

He said the woody underway "provides much clarity for our businesses and brings much marketplace stability."

Italy's authorities leaders, including Prime Minister Giorgia Meloni, issued a statement saying the woody helps debar a "direct clash betwixt the 2 sides of the Atlantic," and "guarantees stability" betwixt the U.S. and European Union.

The connection besides said Italy considered tariffs astatine 15% to beryllium "sustainable," if that percent includes, and is not successful summation to, erstwhile tariffs.

The U.S.-EU commercialized narration was valued astatine 1.68 trillion euros ($1.97 trillion) erstwhile taking into relationship some services and goods trading successful 2024, according to the European Council.

While the EU recorded a surplus connected goods trading, it noted a shortage successful the services realm. This near the EU with an wide commercialized surplus of astir 50 cardinal euros with the U.S. past year.

— CNBC's Terri Cullen contributed to this report.