EU, US strike trade deal; 15% baseline tariff on EU exports to US

President Donald Trump termed it “probably the biggest deal ever reached in any capacity" after his meeting with European Commission President Ursula von der Leyen.

The 15-per cent tariff would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors, Trump said.

“This 15 per cent is a clear ceiling. No stacking. All-inclusive. So it gives much-needed clarity for our citizens and businesses. This is absolutely crucial,” von der Leyen said in a statement.

Pre-existing US tariffs on European goods average around 4.8 per cent, but with companies currently facing an additional flat rate of 10 per cent, the new rate is close to what is now being imposed on European goods imported into the United States.

“Today we have also agreed on zero-for-zero tariffs on a number of strategic products. This includes all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials. And we will keep working to add more products to this list,” she said.

As part of the deal, the EU has agreed to purchase $750 billion worth of energy from the United States, as well as make $600 billion in additional investments, Trump said.

“Purchases of US energy products will diversify our sources of supply and contribute to Europe's energy security. We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels,” von der Leyen said.

"It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic," she said.

Any such deal needs to be approved by EU member states.

German Chancellor Friedrich Merz hailed the deal, saying it avoided "needless escalation in transatlantic trade relations".

The Federation of German Industries said the 15-per cent tariff rate would significantly affect the excessively export-focussed German industry.

ALCHEMPro News Desk (DS)