Trump, EU chief strike 15% trade deal in transatlantic stand-off

The United States has struck a framework trade deal with the European Union, US President Donald Trump announced on July 27, 2025. The agreement averted a spiralling row between the two allies, which account for almost a third of global trade. Following a high-stakes meeting with European Commission President Ursula von der Leyen, both sides reached a deal that includes a 15 per cent tariff on EU goods entering the US and significant EU purchases of American energy and military equipment. The baseline tariff is expected to be seen by many in Europe as a poor outcome compared to a zero-for-zero tariff deal. The result, however, is better than Trump’s threat to impose a 30 per cent rate.