President Donald Trump and European Commission President Ursula von der Leyen shake hands after reaching a trade deal at the Trump Turnberry golf course in Turnberry, Scotland, July 27, 2025. JACQUELYN MARTIN / AP
US President Donald Trump and EU chief Ursula von der Leyen on Sunday, July 27, announced they had reached a deal to end a transatlantic tariffs standoff and avert a full-blown trade war. The agreement came as the clock ticked down on an August 1 deadline for the European Union to strike a deal with Washington, or face an across-the-board US levy of 30%.
"We have reached a deal. It's a good deal for everybody," Trump told reporters following a high-stakes meeting with von der Leyen at his golf resort in Turnberry, Scotland.
Trump told reporters the deal involved a baseline levy of 15% on EU exports to the United States – the same level secured by Japan – including for the bloc's crucial auto sector, which is currently being taxed at 25%.
"We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15%," Trump said. He also said the bloc had agreed to purchase "$750 billion worth of energy" from the US, as well as $600 billion more in additional investments in the country.
