The United States and European Union reached a trade deal July 27, establishing a 15% tariff on most goods—sidestepping, for now, a potential escalation that threatened to disrupt supply chains and inflate costs across global markets.

The agreement capped months of tense negotiations and averted broader trade fallout across sectors spanning aviation, automotive, and consumer goods, with an August 1 deadline looming for sweeping tariffs on EU member states.

European Commission chief Ursula von der Leyen said the deal with the US "will bring stability, it will bring predictability, that's very important for our businesses on both sides of the Atlantic."

von der Leyen noted that together, the EU and the US are a market of 800 million people and nearly 44% of global GDP, as she described the newly inked trade agreement as "the biggest trade deal ever."

U.S.–EU trade deal 

The U.S.–EU trade deal sets a 15% baseline tariff on most European goods entering the U.S., including cars, pharmaceuticals, and semiconductors, replacing the previously threatened 30% rate. In exchange, the EU committed to purchasing US$750 billion in U.S. energy products and investing US$600 billion in U.S. industries by 2028.

Strategic sectors like aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, and agricultural goods will face zero tariffs under a "zero-for-zero" clause. However, steel, aluminum, and copper will continue to be taxed at 50%, with future negotiations expected.

The deal aims to rebalance trade flows, reduce the U.S. goods deficit with the EU, and stabilize transatlantic supply chains. 

von der Leyen noted that the 15% tariffs were "across the board, all inclusive," and that "basically the European market is open" for U.S. exporters.

As with U.S. President Donald Trump's recent tariff agreements involving Japan and the United Kingdom, key provisions in this U.S.–EU deal remain unresolved, leaving room for further negotiation and sector-specific clarification.