EU-US trade deal: European leaders back plan after tensions

The US and EU have announced a trade deal that would set tariffs at 15% for European goods, including automobiles.

"This is the biggest deal ever made," Trump said, lauding EU plans to dramatically increase its purchases of US energy and military equipment as part of the deal.

Trump said the tariff rate would apply to "automobiles and everything else" but not pharmaceuticals — top good the US imported from the EU last year — and metals.

The baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal.

Follow our live blog for reactions and analysis of the deal on Monday, July 28:

07/28/2025July 28, 2025

Dutch PM says EU trade deal with US 'vital for an open economy like ours'

After the US and European Union reached a trade deal, Dutch Prime Minister Dick Schoof thanked the European Commission President Ursula von der Leyen for her "determined efforts to secure the best possible outcome for our businesses and consumers."

"Of course, no tariffs would have been better, but this agreement provides more clarity for our businesses and brings more market stability," Schoof posted on X.

He added that the Netherlands' annual goods exports to the US are worth over €50 billion ($58 billion). 

07/28/2025July 28, 2025

German Chancellor Friedrich Merz welcomes EU-US trade pact

German Chancellor Friedrich Merz welcomed the trade agreement between the European Union and the US which will see a 15% tariff on EU goods entering the US.

 "We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade," Merz said ina government statement issued on Sunday evening.

The no-deal scenario would have "hit the export-oriented German economy hard," according to Merz.

He added that this applied in particular to the automotive industry, where the current tariffs of 27.5% have been almost halved.

The US is Germany's main trading partner.

07/28/2025July 28, 2025

Welcome to our coverage

The EU and US have struck a trade deal, with both sides touting the enormity of the deal after months of tensions over the impact of tariffs.

European Commission President Ursula von der Leyen, describing US President Donald Trump as a tough negotiator, said the deal "will bring stability." She later told reporters that the tariff level on cars was "the best we could get."

Though specifics are yet to be revealed, she also told reporters that bilateral tariff exemptions had been agreed on for a number of "strategic products" like all aircraft and component parts, certain chemicals, generic pharmaceuticals and critical raw materials.