Donald Trump and European Commission chief Ursula Von der Leyen have agreed a trade deal between the US and the EU worth more than $1.35 trillion (£1.05 trillion), he has announced.
They are said to have struck the deal today, as Ms Von Der Leyen visited the US President at his Turnberry golf resort in South Ayrshire, Scotland.
As well as pledging to open up the EU’s huge trading bloc to free trade with America, Europe has pledged to invest more in the US, and buy hundreds of billions of dollars worth of energy.
There was also a commitment on the purchase of military equipment – which is expected to be channelled to Ukraine – but a figure was not confirmed for the size or value of this part of the deal.
After less than an hour of talks, the two leaders went before cameras and announced the deal.
“The European Union is going to agree to purchase form the United States $750 billion worth of energy,” Trump said.
“They are going to agree to invest into the United States $600 billion more than they’re investing already. So they’re investing a large amount of money.
“You know what that amount of money is, it’s very substantial.”
He went on: “They’re agreeing to open up their countries for trade at zero tariff. So that’s a very big factor. All of the countries will be opened up to the United States at zero tariff.
“And they’re agreeing to purchase a vast amount of military equipment. We don’t know what that number is but the good news is we make the best military equipment in the world.”
Trump said they’d also agreed to a “straight across” tariff of 15% on all products imported into the United States – significantly lower than the 30% he originally threatened.
“I think that basically concludes the deal,” he said. “Those are the main factors. I don’t think there are too many other factors.”
The Commission’s President sat next to Trump at his golf resort on the Scottish coast as he made the announcement.
Earlier she had called for a rebalancing of bilateral trade worth billions of dollars between the vital partners.
Speaking to reporters before their private meeting began, she and Trump both put the chances of reaching an agreement at 50-50.
“This is bigger than any other deal,” Trump said, suggesting they could hammer out an agreement in just a short time. The president also pledged to change what he characterized as “a very one-sided transaction, very unfair to the United States.”
“I think both sides want to see fairness,” Trump said.
Von der Leyen said the US and EU combined have the world’s largest trade volume, encompassing hundreds of millions of people and trillions of dollars. Trump said the stakes involved meant of making a deal, “We should give it a shot.”
Von der Leyen said Trump was “known as a tough negotiator and dealmaker” which caused the president to interject with ”but fair.” She said that, if they are successful, “I think it would be the biggest deal each of us has ever struck.”
Trump called meeting with von der Leyen at his Turnberry golf course — where he played in the morning, an honor.
“I think the main sticking point is fairness,” he said while also noting, “We’ve had a hard time with trade with Europe, a very hard time.”
For months, Trump has threatened most of the world with large tariffs in hopes of shrinking major U.S. trade deficits with many key trading partners. More recently, he’s hinted that any deal with the EU would have to “buy down” the currently scheduled tariff rate of 30%.
During remarks before the media Sunday, the president pointed to a recent US agreement with Japan that set tariff rates for many goods at 15% and suggested the EU could agree to something similar.
Asked if he would be willing to accept tariff rates lower than that, Trump said “no.”
“I’d like to see it resolved,” Trump said of a deal with Europe. “But if it isn’t, we’ll have tariffs.” Of retaliation from Europe he said, “They’ll do what they have to do.”
Joining von der Leyen were Maros Sefcovic, the EU’s chief trade negotiator; Björn Seibert, the head of von der Leyen’s Cabinet; Sabine Weyand, the commission’s directorate-general for trade, and Tomas Baert, head of the trade and agriculture at the EU’s delegation to the U.S.
The US and EU seemed close to a deal earlier this month, but Trump instead threatened the 30% tariff rate. The deadline for the Trump administration to begin imposing tariffs has shifted in recent weeks but is now firm, the administration insists.
“No extensions, no more grace periods. Aug. 1, the tariffs are set, they’ll go into place, Customs will start collecting the money and off we go,” US Commerce Secretary Howard Lutnick told “Fox News Sunday.” He added, however, that even after that “people can still talk to President Trump. I mean, he’s always willing to listen.”
Lutnick said the EU “needs to make a deal and wants to make a deal and they are flying to Scotland to make a deal with President Trump. The question is do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set.”
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Without an agreement, the EU said it would have been prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.
Had Trump eventually made good on his threat of tariffs against Europe, it could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the United States.
The US and Britain, meanwhile, announced a trade framework in May and a larger agreement last month during the Group of Seven meeting in Canada. Trump says that deal is concluded and that he and Starmer will discuss other matters — though the White House has suggested it still needs some polishing.