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US and EU Strike Preliminary Trade Deal Setting 15% Tariffs

Replacing threatened 30% levies with a 15% tariff in return for EU commitments on $750 billion of energy purchases alongside $600 billion of investments, the framework now awaits legal drafting alongside EU ratification.

German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 25, 2025.  REUTERS/Wolfgang Rattay/ File Photo
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Overview

  • The US will impose 15% tariffs on most EU imports and maintain 50% duties on steel and aluminum under the preliminary framework.
  • The EU has confirmed commitments to purchase $750 billion in US energy products and invest $600 billion in the American economy through 2028.
  • European leaders across the political spectrum criticized the deal as disproportionately favoring US interests and undermining EU trade leverage.
  • European markets responded with gains in automaker stocks and four-month highs in EU indices while bond yields declined amid eased trade tensions.
  • The framework must be translated into detailed legal text and secure approval from EU member states and the European Parliament before taking effect.