New EU-US Trade Pact Ensures Stability with ‘Zero-for-Zero’ Tariffs in Key Sectors

European Commission President Ursula von der Leyen and U.S. President Donald Trump reached an agreement on Sunday to resolve their trade dispute over increased tariffs, with the establishment of 15% levies on European products and commits the European bloc to additional investments as well as energy and armaments acquisitions.

The U.S. president has specified that the agreement includes a 15% tariff on EU goods entering the United States. Brussels will make energy purchases from the United States worth $750 billion, investments worth $600 billion and the acquisition of a “huge” amount of American military equipment. The president did not specify this last aspect.

Von der Leyen subsequently confirmed this “one-off” tariff of 15% for “the vast majority of EU exports,“ such as automobiles, semiconductors and pharmaceuticals. “This 15% is a clear ceiling, so there is no accumulation of tariffs,“ he said.

Von der Leyen: “This 15% is a clear ceiling, so there is no accumulation of tariffs”

The president of the European Commission confirmed that she has also agreed with the United States on “zero-for-zero tariffs” in other areas: aeronautics, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and essential raw materials.

On energy purchases, Von der Leyen defended that the acquisitions will serve to “diversify our sources of supply and to contribute to Europe’s energy security” compromised by the war in Ukraine.

“We will replace Russian gas and oil with significant purchases of liquefied gas and U.S. nuclear fuel,“ Von der Leyen assured.

The agreement reached in Turnberry (Scotland) saves the threat of the US president who gave Brussels until August 1 or else he would impose 30% of generalized tariffs on European productions from that moment on.

It should be recalled that, since last April, the United States has imposed a minimum tariff of 10% on European exports, which it initially announced at 20%, but reduced by half as a gesture of “truce” in order to negotiate an agreement with the EU.

In general terms, Von der Leyen has valued that this agreement has been closed thinking, above all, in a European market of 450 million consumers, which is “the greatest asset and a safe harbor” for the European Union “especially in turbulent times”.

“Today’s agreement creates certainty in times of uncertainty. It offers stability and predictability for citizens and businesses on both sides of the Atlantic,“ said the President of the European Commission.