Sarah Smith
BBC North American Editor, Turnberry, Scotland
I think it’s the biggest deal ever made – Trump
The US and the European Union agreed to a trade agreement, ending a month-long honor between the two world’s largest economic partners.
After negotiations between Scotland’s President Donald Trump and European Commission Chairman Ursula von der Leyen, the pair agreed to US tariffs on all EU goods at 15%.
That’s half of the tax rate Trump threatened to start on Friday. He said that 27 blocks will reveal the market to US exporters with zero percent tariffs on certain products.
Von Der Leyen also welcomed the deal, saying it would bring stability to both allies.
Trump has exercised tariffs on major US trading partners to sort the global economy and settle the US trade deficit.
Like the EU, he attacked tariff agreements with the UK, Japan, Indonesia, the Philippines and Vietnam, but has not achieved its goal of “90 deals in 90 days.”
French Minister of European Affairs Benjamin Haddad responded to the deal early on Monday and said it had some benefits, including exemptions from several French business sectors such as spirits, but it was unbalanced.
“The trade agreement negotiated with the United States by the European Commission provides temporary stability for economic actors threatened by the escalation of American tariffs, but that is disproportionate,” Haddad writes in X.
The agreement was announced Sunday after private talks between Trump and von del Reyen at Turnberry Golf Course in South Ayrshire.
Trump, who was on a five-day visit to Scotland, said following the brief meeting:
“It’s going to bring us closer,” he added.
Von Der Leyen welcomed it as a “big deal” after “stricken negotiations.”
The EU’s top officials had to describe the deal as a “framework” agreement and negotiate technical details “over the coming weeks.”
The Commission is obliged to negotiate trade transactions across the bloc, but still requires approval by EU member states.
Trump plays this weekend’s second round of golf at Turnberry before the EU speaks
Trump said the EU will increase its investment in the US by $600 million (£446 billion) including US military equipment, and spend $750 billion on energy.
Von Der Leyen said investments in US liquefied natural gas, oil and nuclear fuel over the next three years will help reduce Europe’s dependence on Russia’s power sources.
Some products do not attract customs duties on aircraft and plane parts, certain chemicals, and some agricultural products. Another transaction in relation to semiconductors may be announced soon.
One important area where contracts have yet to be hit is alcohol, with France and the Netherlands in particular seeking tariff exemptions for their respective wine and beer industries.
However, he said that 50% of US tariffs Trump has been implemented on steel, and aluminum will be maintained worldwide.
“I would like to personally thank President Trump for his personal commitment and for his leadership in achieving this breakthrough,” von der Leyen said.
“He’s a tough negotiator, but he’s also a deal maker.”
Both sides can portray this agreement as a victory.
For the EU, tariffs could have been worse. It’s not as good as the UK’s 10% tariff rate, but the same as the 15% rate that Japan negotiated last week.
For the US, based on trade numbers last year, it amounts to expectations of around $90 billion in tariff revenues in government funding, and hundreds of millions of dollars will appear in the US.
One thing is clear. Trump celebrates after attacking the biggest trade deal in history.
The deal has many advantages for the US, but it’s not so clear what the EU will get.
It was noteworthy that Von Der Leyen spoke about “realigning” the trading relationship.
Previously, the EU has argued that the relationship is not in balance as it purchases far more services from the US than the EU sells.
It sounded like von der Leyen was intentionally speaking Trump’s language to seal the agreement.
The US President came in the conditions of the shower after completing 18 holes at Turnberry Resort with guests and family, including his son Eric.
Commodity trade between the EU and the US totaled around $976 billion last year. The US imported approximately $606 billion in goods from the EU and exported approximately $3700 billion in 2024.
That imbalance, or trade deficit, is a sticking point for Trump. He says that such trade relations mean that the US is “losing.”
If he had continued with tariffs on Europe, import taxes would have been imposed on products ranging from Spanish medicines to Italian leather, German electronics and French cheese.
The EU said it was ready to retaliate with tariffs on US goods, including auto parts, Boeing aircraft and beef.
Ayrshire bowlers will give a verdict on Trump’s visit
European leaders have carefully welcomed the deal.
Ireland’s prime minister, Taoiseach Micheál Martin, pointed out the fact that tariffs would be higher than before, making trade “more expensive and challenging.”
Of the EU countries, Ireland is the most dependent on the US as an export market.
German Prime Minister Friedrich Merz posted on X that the trade dispute would hit Germany hard.
“Stable and predictable trade relationships with market access benefit everyone on both sides of the Atlantic, business and consumer,” he added.
Italian Prime Minister Giorgia Meloni welcomed the deal but said he needed to see details, Italian ANSA news agency reported.
British Prime Minister Kiel Starmer is planning his own meeting with Trump on Turnberry on Monday.
The US president will be in Aberdeen on Tuesday. His family will hold another golf course and open a third next month.
The president and his sons will help cut the ribbons for the new fairway.
