US and EU reach a framework trade deal, 15% tariff rate, EU to purchase energy from the US

US and EU reach a framework trade deal, 15% tariff rate, EU to purchase energy from the US

• Trump says “This is the biggest one of them all”

The EU and the US have reached a framework trade agreement that sets a blanket 15% tariff on goods traded between them, ending a months-long stand-off.

• Single 15% tariff rate applies across most sectors
• 0% for 0% tariffs on a number of products, including all aircraft and parts, semiconductor equipment, certain chemicals, certain generics, certain agriculture products, natural resources and critical raw materials and more
• work to add more products to list still to be done

• agreement averts the 30% tariff previously threatened by the US administration.

• EU concessions:

  • It agreed to not impose retaliatory tariffs.

  • It pledged $600 billion in investment in the US, though the timeline and specifics are undefined.

The EU entered talks seeking a better deal than the 10% tariff the UK accepted in May. After US–Japan talks resulted in a 15% baseline, the EU followed suit. EU officials acknowledged the limited leverage they had compared to the US.

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Trump met with European Commission President Ursula von der Leyen in Scotland.

Trump:

• “This is the biggest one of them all”
• EU will agree to purchase $750 billion of energy
• EU will invest $600 billion more than planned in the U.S.
• tariff rate applying to imports from the EU would be 15%

Von der Leyen:

• 15% would be a ceiling rate
• the same rate applying to cars, pharmaceuticals and semiconductors
• tariff treatment for alcoholic beverages has still to be worked out
• Europe would replace Russian gas with purchases of energy from the U.S. with purchases of $250 billion per year for the rest of Trump’s term

EUR/USD has been marked higher in early FX dealings:

• Monday open levels, indicative FX prices, 28 July 2025 - EUR up on US/EU 'framework' deal

Other news of note:

• US and China to extend tariff pause by another 90 days - report