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U.S., EU Strike Non-Binding Framework Imposing 15% Tariff on European Imports

EU leaders must still ratify the outline, leaving tariff schedules, reciprocal investment pledges subject to further negotiation

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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President Donald Trump and European Commission President Ursula von der Leyen shake hands after reaching a trade deal at the Trump Turnberry golf course. Photo: Alamy

Overview

  • The agreement sets a 15% baseline U.S. tariff on most EU goods while preserving 50% duties on steel and aluminium.
  • The EU has pledged $750 billion in U.S. energy purchases over President Trump’s term alongside a $600 billion investment commitment.
  • President Trump and Ursula von der Leyen secured zero-for-zero tariff treatment for strategic sectors such as aircraft, semiconductor equipment and critical raw materials.
  • The framework is a political outline rather than a binding treaty, with legal text, detailed quotas and enforcement mechanisms still to be drafted.
  • Reactions among EU policymakers range from relief at averting steeper levies to criticism that the deal concedes too much without ensuring balanced market access.