President Donald Trump and European Commission President Ursula von der Leyen announced a sweeping trade agreement Sunday that resets transatlantic commerce terms. The deal imposes flat 15% tariffs on automobiles and industrial goods while securing $150 billion in EU commitments to purchase US liquefied natural gas over the next decade. “This ends decades of unfair one-sided trade,” Trump declared during the joint announcement in Scotland.
The agreement addresses longstanding US grievances about market access, particularly for agricultural exports. Von der Leyen acknowledged the “heavy lifting” required to rebalance a relationship where the EU held a $179 billion trade surplus in 2022. Beyond energy, the EU pledged $600 billion in additional US investments across manufacturing and technology sectors. The deal notably excludes agriculture tariffs, leaving sensitive European farming protections intact while opening new industrial markets.
Despite initial skepticism – with both leaders earlier estimating only 50-50 odds of success – the breakthrough comes after 18 months of negotiations. The pact sidesteps congressional approval through executive agreements on regulatory alignment, though lawmakers may review specific provisions. Implementation begins immediately, with auto tariffs adjusting within 90 days. This marks Trump’s second major trade achievement after USMCA, potentially reshaping global supply chains ahead of the November election.
