In a dramatic breakthrough that could reshape the global economic landscape, the United States and the European Union have struck a landmark trade agreement, averting what many feared could spiral into the largest trade war in decades.

 

Announced Sunday at President Donald Trump’s Scottish golf resort, the pact imposes a 15% tariff on most EU goods—half of the initially threatened 30% rate — while securing sweeping commitments from Europe, including a $600 billion investment in the US economy and an unprecedented boost in American energy and defence exports.

 

White House said on X: "President Trump secured a HUGE, POWERFUL TRADE DEAL between the US and EU.

The EU will: 

* Invest $600 billion in US

* Purchase $750 billion in American energy

* Open markets to US

 

“This is the biggest deal ever made,” declared Trump, who framed the agreement as a turning point for US trade policy after what he called years of “unfair treatment.”

 

For the EU, the deal brings stability to an alliance that underpins nearly one-third of global trade. European Commission President Ursula von der Leyen, calling Trump a “tough negotiator,” hailed the compromise as “the best we could get,” adding that the agreement ensures “stability and predictability” for both economies.

 

Key concessions include exemptions for pharmaceuticals and limited exclusions for aircraft and medical equipment. The 15% tariff — down from Trump’s threatened 30% — takes effect in August.

 

The deal follows months of negotiations and comes on the heels of a $550 billion US-Japan agreement last week, signaling Washington’s aggressive push to redefine trade relationships worldwide.

 

EU has pledged $600 billion US investment and  $750 billion in American energy purchases.

 

Von der Leyen stressed that Europe remains prepared to take “precautionary measures” if necessary, but for now, markets appear poised to welcome a rare moment of predictability in global trade.