US-EU trade deal wards off further escalation but will raise costs for companies, consumers

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Source: AP

Updated 10:31 PM EDT, July 27, 2025


FRANKFURT, Germany (AP) — President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump’s threat of a 30% rate if no deal had been reached by Aug. 1.

The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the trade deal between the United States and the European Union:

Many details remain to be decided

Trump and von der Leyen’s announcement, made during Trump’s visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on “the vast majority” of European goods brought into the U.S., including cars, computer chips and pharmaceuticals. It’s lower than the 20% Trump initially proposed, and lower than his threats of 50% and then 30%.

Von der Leyen said the two sides agreed on zero tariffs on both sides for a range of “strategic” goods: Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products, and some natural resources and critical raw materials. Specifics were lacking.

Read more: https://apnews.com/article/eu-tariffs-united-states-15-prices-growth-31e52a6dda17f3b5d70475e1cd0002ca