15% Tariffs, $600B in Investment: EU–U.S. Trade Pact Explained

The United States and European Union have finalized a landmark trade agreement that resets transatlantic economic relations after months of negotiation. Announced during President Donald Trump’s visit to Scotland, the deal imposes a uniform 15% tariff on nearly all EU goods entering the U.S., including cars, semiconductors, and pharmaceuticals, down from previous rates like 27.5% on automobiles.

While some sectors, such as chips and pharmaceuticals, remain under review pending separate U.S. trade investigations, other industries will benefit from zero-for-zero tariffs, including aircraft components, agricultural goods, and select chemicals.

In a significant economic exchange, the EU has pledged $750 billion in strategic purchases of U.S. oil, gas, nuclear fuel, and chips during Trump’s second term, alongside a $600 billion investment commitment from European companies in U.S. markets. Tariffs on European steel and aluminum will remain at 50% temporarily, but are expected to transition to a quota-based system.

European Commission President Ursula von der Leyen described the agreement as “a rebalancing” of the U.S.–EU trade relationship, while Trump framed it as a win for American industry.