The US and the European Union signed a historic trade agreement in Scotland on July 27, 2025, after months of negotiations. The agreement, announced by US President Donald Trump and European Commission President Ursula von der Leyen, aims to de-escalate the escalating trade tensions between the two sides. The new regulations directly impact high-volume sectors such as the automotive, energy, and defense industries.
US and European Union sign trade agreement
The most striking provision of the agreement is the new 15% tariff on goods imported from Europe to the US. The Trump administration had previously threatened to increase this rate to as much as 30%.
The previous 27.5% tariff, which particularly affected German and French automakers, has been significantly reduced with this new agreement. The European side sees this rate as a basis for compromise, while the US side emphasized that steps have been taken to improve the trade balance.
The agreement is not limited to tariffs. The EU will purchase a total of $750 billion worth of energy and semiconductor products from the US over the next three years. Strategic items such as oil, natural gas, and nuclear fuel are prominent among these. Furthermore, the EU will make $600 billion in direct investments in the US.
The majority of this investment will be directed towards the defense industry. This includes military equipment, cybersecurity infrastructure, and joint production projects. Trump described the agreement as the largest trade agreement ever made.
Products subject to tariffs have also been clarified. Aircraft and their parts, some chemicals, generic drugs, semiconductor manufacturing equipment, certain agricultural products, and natural resources are exempt from duties under the agreement.
However, the parties have not yet reached an agreement on certain items, such as alcoholic beverages, steel, and aluminum. The EU has criticized the maintenance of the current 50% tariff on steel and aluminum, in particular. While the European side has proposed switching to a quota system for these items, negotiations are ongoing.
The agreement generally aims to strengthen stability in transatlantic trade and clarify the investment climate. However, some in Europe are criticizing the 15% tariff as still high and claiming that investments in the US could create imbalances in the European economy. However, global market experts say this agreement could create new export and cooperation opportunities, particularly in the automotive and energy sectors.
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