EU leaders resigned to US trade deal terms

By: Sky Business Posted On: July 27, 2025 View: 0

A number of European leaders have hit out at the terms of the United States and European Union trade deal.

Speaking after talks in Turnberry, Mr Trump told reporters it was the "biggest deal ever made" and will be "great for cars" as well as having a "big impact" on agriculture.

European Commission chief Ursula von der Leyen said the "big deal" would help bring "stability" to trade after months of turmoil over the threat of a trade war.

The US will impose 15% tariffs on most EU goods entering America, after Mr Trump had threatened a 30% levy.

But French Prime Minister Francois Bayrou said of the terms: "It is a sombre day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission."

Long-time EU critic, Hungarian PM Viktor Orban, responded: "This is not an agreement ... Donald Trump ate von der Leyen for breakfast, this is what happened and we suspected this would happen as the U.S. president is a heavyweight when it comes to negotiations while Madame President is featherweight."

Others welcomed news of an agreement but seemed resigned to the terms.

The deal includes $600bn (£446bn) of EU investments in the US, and the bloc will buy $750bn (£558bn) of US energy and also purchase American military equipment.

Mr Trump said: "I think it's great that we made a deal today instead of playing games and maybe not making a deal at all."

He said: "We are agreeing that the tariff... for automobiles and everything else will be a straight across tariff of 15%." However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would stay in place.

Ms Von der Leyen said: "We have a trade deal between the two largest economies in the world and it's a big deal, it's a huge deal. It will bring stability, it will bring predictability, that's very important for our businesses on both sides of the Atlantic."

She said the agreement would include 15% tariffs "across the board", and it would help rebalance trade between the two large trading partners.

She said the levy rate was the "best we could get" regarding the car sector.

But she added that there was "no decision" on the spirits sector, which was one of those areas where the details in the framework trade deal would have to be examined in the coming weeks.

Mr Trump had earlier said the main sticking point was "fairness", citing barriers to US exports of cars and agriculture.

He went into the talks demanding fairer trade with the 27-member bloc and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes.

For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU.

In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods.

Ahead of their meeting on Sunday, Ms Von der Leyen described Mr Trump as a "tough negotiator and dealmaker".

The deal mirrors parts of the framework agreement the US clinched with Japan last week.

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