Economists were predicting free-fall. But Trump has executed the Art of the Deal.
Now he announced a major deal with a foreign leader that brings jobs back to America.
Trump Secures Landmark EU Trade Agreement
In a swift 75-minute negotiation, President Donald Trump and European Commission President Ursula von der Leyen finalized a preliminary trade deal that strengthens U.S. economic interests.
Trump announced, “I think it’s the biggest deal ever made,” highlighting Europe’s commitment to purchase $750 billion in American energy products, invest $600 billion in the U.S., and buy additional U.S. military equipment.
Tariffs on many U.S. exports to the EU will drop to zero, while duties on most European goods entering the U.S. rise to 15%, addressing the $235 billion U.S. trade deficit with the EU, which saw $1.97 trillion in total trade last year. Von der Leyen noted, “The starting point was an imbalance — a surplus on our side and a deficit on the US side,” emphasizing efforts to rebalance trade.
Trump’s decisive negotiation, conducted at his Turnberry golf course in Scotland, averted a potential trade war just days before his “Liberation Day” tariffs were set to take effect on August 1, showcasing his dealmaking prowess.
Strategic Wins for American Industries
The agreement includes zero-for-zero tariff rates on strategic products like aircraft, chemicals, generics, semiconductor equipment, agriculture, and critical raw materials, benefiting American farmers and manufacturers.
Trump predicted, “I think maybe cars would be the one that would go the biggest, and the second would be agriculture, the farmers,” noting reduced EU tariffs on U.S. autos from the previous 27.5% rate.
He clarified that pharmaceuticals, a major European export, were excluded due to plans for aggressive reshoring, with Trump recently threatening 200% tariffs on such products. Steel and aluminum tariffs remain at 50%, with von der Leyen hinting at a quota system without elaboration.
Commerce Secretary Howard Lutnick praised the deal, stating, “President Trump just unlocked one of the biggest economies in the world,” as the EU accepts U.S. auto and industrial standards.
Republican Rep. Ashley Hinson (R-Iowa) called it “another historic trade deal, another big win for America,” reflecting Trump’s success in prioritizing American industries.
Trump’s Global Trade Strategy Gains Momentum
The EU deal aligns with Trump’s broader trade agenda, including preliminary agreements with the UK, Vietnam, Japan, Indonesia, and the Philippines, and a tariff truce with China, with an August 12 deadline for a broader deal.
Trump has maintained tariffs like 25% on non-USMCA-compliant imports from Canada and Mexico and used trade as a geopolitical tool, threatening Russia with 100% secondary tariffs on oil unless it negotiates peace with Ukraine by mid-September.
He also warned Cambodia and Thailand to resolve border disputes or face halted trade talks.
Stephen Miran, Council of Economic Advisers chairman, defended Trump’s approach, posting on X, “Wrong. You owe an apology to [the president]. Another huge failure for elite consensus.”
Trump reiterated, “I think we both wanted to make a deal. It’s going to bring us closer together,” emphasizing his commitment to “Liberation Day” tariffs with no further delays, reinforcing his leadership in reshaping global trade to favor American prosperity.
