On July 27, 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump reached a deal on tariffs and trade.

The transatlantic partnership is crucial for global trade and represents the largest bilateral trade and investment relationship worldwide. EU-US trade in goods and services doubled over the past decade, exceeding €1.7 trillion in 2024, with €867 billion in goods and €817 billion in services. This means over €4.2 billion worth of goods and services cross the Atlantic daily. This strong partnership is supported by mutual investments. In 2022, EU and US companies invested €5.3 trillion in each others markets.

This political agreement reinstates stability and predictability for citizens and businesses on both sides of the Atlantic. The deal ensures continued access for EU exports to the US market, maintaining deeply integrated value chains—many of which depend on SMEs—and effectively safeguarding jobs. It also lays the groundwork for ongoing collaboration between the EU and the US.

In the political agreement of July 27, 2025, Presidents von der Leyen and Trump outlined the key parameters of the EU-US trade relationship. This marks the first step in a process that will expand over time to cover additional areas and enhance market access.

The key commitments include: 

• Setting a single, all-inclusive US tariff ceiling of 15% for EU goods. Starting August 1, the US will impose this maximum tariff on most EU exports. This all-inclusive tariff rate represents a ceiling, including the previous additional tariffs.
• Special treatment for strategic products. From August 1, 2025, US tariffs on EU aircraft and parts and certain chemicals will revert to pre-January levels, providing immediate tariff relief for key EU industries.
• Joint efforts to protect the steel, aluminum, and copper sectors from unfair competition. The EU and US will set tariff rate quotas for EU exports, reducing current tariffs and ensuring fair global competition.
• Liberalizing certain trade from the US into the EU. EU consumers will save around €5 billion in duties annually, while core EU industries remain protected.
• Reducing non-tariff barriers, enhancing cooperation on automotive standards and sanitary measures.
• Strengthening cooperation on economic security. The EU and US will work on enhancing supply chain resilience and addressing non-market policies.
• Ensuring reliable access to critical energy supplies. The EU plans to procure US liquified natural gas and other energy products, valued at $750 billion over three years, aiding in replacing Russian energy.
• Promoting mutual investments. EU companies aim to invest at least $600 billion in various US sectors by 2029.

This political agreement aligns with the EUs economic interests in fostering stable trade and investment relations with the US while respecting the EUs regulatory sovereignty and protecting sensitive agricultural sectors.

The political agreement of July 27, 2025, is not legally binding. The EU and US will continue negotiations to fully implement this agreement.