In agreement they reached yesterday (27.7.25) EU and the USA in relation to the tariff dispute they have been in for almost 4 months.
This prevents a escalation of the trade dispute between the two financial forces shortly before the US deadline, according to Handelsblatt. The deal was announced by US President Donald Trump and EU Commission President Ursula von der Laien at a press conference on Sunday night in Turnbury, Scotland. Trump said the agreement with the EU was “the biggest of all”.
The US will impose a 15% single duty on most imports from the European Union – including cars.
“Today’s agreement creates certainty in uncertain times”said von der Layen. However, the illusion of this certainty under Trump was already evident when the agreement was announced, in which the two presidents were partially mutually mutually mutually: the US president announced that he would soon impose new duties on medicinal products.
Trump said 50% “world” duties will continue to apply to steel and aluminum.
Von der Layen, however, said the punitive duties on steel and aluminum would “be restricted and replaced by a quota system”.
The agreed rate of 15% will be implemented “in all areas”, including pharmaceuticals and semiconductors, and will be “a clear ceiling – without burdens, everything is included”.
‘Zero duties’ on aircraft and agriculture
In addition, and The two sides agreed to resign fully from duties to certain strategically important areas, According to von der Layen.
In the future, “Zero duties” will apply to the transatlantic trade of aircraft and spare parts, some agricultural products, certain chemicals, certain generic products, semiconductor equipment, accessories, raw materials and critical basic materials.
The EU will “continue to work to expand this list”. Airbus is particularly likely to benefit from the zero duty on aircraft and components: the European manufacturer also manufactures A320 aircraft in the US and imports basic accessories from Europe. The Dutch company ASML, which manufactures machines necessary for chip production, is particularly likely to benefit from the abolition of duties on semiconductor equipment.
The US Intel Chip Construction Company is considered its third largest customer. US artificial intelligence semiconductors will supply European artificial intelligence plants, Von Der Leyen said, “and will help the US maintain their technological lead.”
Nevertheless, The highest US duties are likely to have negative consequences for the EU economy, as indicated by the Kiel Institute for the World Economy (IFW) for Handelsblatt. Economists expect GDP declines by 0.15% in Germany within one year. For the EU as a whole, the reduction is 0.1%.
The EU opens the market for cars and agriculture
When asked where he sees the biggest opportunities for US extra exports, Trump first named the vehicles and then the agricultural products. “We have some cars that are sold very well and we really have great success with pickups and SUVs”. The EU will now abolish import barriers to US vehicles. “And I think the peoples of Europe will have a little more diversity as a result. I think they’ll be happy with it »the president said.
Brussels have also been committed Introduce $ 750 billion in power from the US and invest another $ 600 billion in the United States. European countries will also buy defense equipment “in large quantities,” Trump said.
Von der Layen explained that the EU will increasingly replace Russian gas with American gas in the future. It is expected that US energy imports will increase to about $ 250 billion a year since next year – and so they could reach a total volume of $ 750 billion in the remaining three years of Trump’s term.
The euro increased by 0.27% compared to the dollar after the duties agreement, reaching $ 1,177.
Chancellor Friedrich Mertz welcomed the deal, saying he had managed to “prevent a trade conflict that would hit the exporting oriented German economy. This is especially true for the automotive industry, where current duties will be reduced by almost half from 27.5% to 15%, “the CDU leader said on Sunday.
Now, negotiations will begin on the details of the deal.
Frustration in German industry
The German industry was much more critical of the agreement. BDI (German Union of Industries) said the EU had sent a fatal message with the deal because it was accepting painful duties. “Even a 15% duty will have a huge negative impact on exporting oriented German industry,” BDI expert Wolfgang Niedermark criticized.
The German Association of Chemical Industries (VCI) was also frustrated. Managing Director Wolfgang Große Entrup said: “Anyone waiting for a hurricane is grateful for a storm.”
Trump triggered the trade conflict in spring with punitive tariffs in basic European industries – from the automotive to the chemical sector. Its threat: If the EU did not further open its purchase, duties would increase to 30% from August 1, 2025.
The EU had prepared its own measures in response. Member States gave the Commission the green light for countermeasures in US products totaling up to 93 billion euros. These were to come into force at various stages – from August 7, 2025.
Trump demanded EU measures to reduce US deficit in trade with the EU. Von der Leyen said Sunday that the EU wanted to help him: “We wanted to balance the commercial relationship – but in a way that would continue to allow transatlantic trade.” The chairman of the committee was willing to present the agreement as a balanced compromise. “I think we got exactly the point we wanted to achieve: to create a balance, but to maintain jobs on both sides of the Atlantic.”
The negotiations continued, partly due to the long conflict over the terms of car exports. For this basic European industry, the lowest 15% rate represents a noticeable relief compared to the previously applicable duties.
Hildegard Müller, president of the German Automotive Union (VDA), has relieved its original reaction: “It is fundamentally good that the President of the European Commission Ursula von der Leyen and US President Donald Trump announced a framework agreement and thus prevented a further escalation of the trade dispute.”
At the same time, however, the leader of the Union stressed that the new terms will still have extensive consequences for the industry. “The US duty of 15%, including car products, will cost billions of German car companies and burden them in the midst of transformation.”, said Müller.
Since the beginning of April, European automakers had to pay a US import duty of 25% in addition to an existing 2.5%. In addition, the US has also imposed a 25% duty on car spare parts since early May, Handelsblatt said.
Only this has led to billions to cost. Volkswagen’s tariff costs since April amounted to 1.3 billion euros, according to the automotive industry a few days ago. Opel’s parent company Stelantis estimated the net cost of US duties at around € 300 million, as automakers offset part of the cost through lower profit margins.
However, German automakers, in particular BMW and Mercedes-Benz, failed to meet their original requirement. They hope for a so -called export compensation, in which manufacturers’ exports from their plants to the US are offset by imports from Europe.
According to the German Automotive Association (VDA), Germany exported about 450,000 vehicles in the US last year. At the same time, German manufacturers produced more than 844,000 vehicles in the US, about half of which were exported worldwide.
The agreement between the US and the EU is similar to the agreement between the US and Japan. Countries agreed on Wednesday night that the US would limit import tariffs on Japanese cars and other industrial products to a stable 15%.
In return, Tokyo will open its purchase on American agricultural products, including rice, beef and dairy products. Japan also promises to invest $ 550 billion in the US through loan guarantees and loan guarantees. However, 50% of Trump’s duties in steel and aluminum will remain in force.
In early July, Trump announced that more than 150 countries had received letters on a possible US tariff rate. In the middle of this week, Trump said: “We will have a simple, clear tariff factor between 15 and 50 percent.” A final decision has not yet been made, the president said.
In the letters, Trump extended the July 9th deadline of 9 weeks, triggering frenzied negotiations between many commercial partners to avoid higher duties.