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American Focus > Blog > The White House > The United States and European Union Reach Massive Trade Deal – The White House
The White House

The United States and European Union Reach Massive Trade Deal – The White House

Last updated: July 28, 2025 11:35 am
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The United States and European Union Reach Massive Trade Deal – The White House
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TRANSFORMING GLOBAL ECONOMICS: In a bold move that many will remember for years to come, President Donald J. Trump unveiled a significant trade agreement with the European Union (EU) yesterday, which aims to recalibrate the economic ties between two of the world’s largest economies.

  • This deal represents a generational overhaul of the transatlantic partnership, granting Americans extraordinary access to the EU market.
  • It is poised to enhance the American economy and manufacturing sector, with the EU committing to purchase $750 billion worth of U.S. energy and invest an additional $600 billion in the United States by 2028.
  • Through assertive leadership and a steadfast commitment to American workers, President Trump has once again positioned the U.S. as the go-to destination for global investment, innovation, and advanced manufacturing.

ACHIEVING A LANDMARK TRADE AGREEMENT: This new pact between the U.S. and the European Union introduces vital structural reforms and strategic commitments that promise to benefit American industry, workers, and national security for future generations:

  • The U.S. and EU have formalized a Cooperation Agreement aimed at fostering Reciprocal, Fair, and Balanced Trade.
  • This monumental deal will empower U.S. farmers, ranchers, fishermen, and manufacturers to boost exports, expand business prospects, and mitigate the goods trade deficit with the EU. Notably, the EU will eliminate significant tariffs, including all duties on U.S. industrial goods—creating vast opportunities for American products to thrive in European markets. This enhanced access is expected to stimulate growth across the U.S. economy, driving exports, increasing production, and allowing American companies to tap into millions of new customers across the Atlantic.
  • In alignment with President Trump’s vision for balanced trade, the EU will impose a 15% tariff rate on U.S. goods, encompassing autos, pharmaceuticals, and semiconductors. However, tariffs on steel, aluminum, and copper will remain unchanged, with the EU continuing to pay 50%. Discussions will be held to secure supply chains for these materials. This revised tariff structure is projected to yield billions in annual revenue, aiding in remedying the longstanding trade imbalance by encouraging local sourcing and reshoring production, ensuring that foreign entities contribute fairly to the U.S. economy.
  • Key components of the U.S.-EU Agreement include:

    • Significant EU Investment in the U.S.: Over President Trump’s term, the EU is set to invest $600 billion in the United States, supplementing the $100 billion already funneled annually by EU companies into the U.S. market.

    • Empowering American Energy: By 2028, the EU will purchase $750 billion worth of U.S. energy exports, reinforcing America’s energy supremacy, reducing Europe’s dependence on less friendly sources, and addressing the trade deficit with the EU.

    • Reducing Tariff Barriers: The EU has committed to collaborating with the U.S. to dismantle tariffs across various sectors, while also providing meaningful quotas for other products, thereby creating substantial market access for numerous U.S. exports and supporting high-quality American jobs.

    • Addressing Non-Tariff Barriers for U.S. Industrial Exports: The EU will engage with the U.S. to alleviate burdensome EU requirements that hinder small and medium-sized U.S. exporters, aspiring to minimize red tape in transatlantic trade.

    • Streamlining Agricultural Trade: The U.S. and EU aim to tackle non-tariff barriers affecting food and agricultural products, including simplifying sanitary certificate requirements for U.S. pork and dairy.

    • No Free Riders: Strong rules of origin will be established to ensure that the advantages of this agreement directly benefit the U.S. and EU, and not third countries.

    • Eliminating Digital Trade Barriers: Both parties will work to eliminate unjustified digital trade barriers, with the EU pledging not to impose network usage fees and maintaining zero customs duties on electronic transmissions.

    • Strengthening Economic Security: The two sides will enhance supply chain resilience and innovation, aligning economic security strategies and addressing non-market policies from third parties.

    • Commercial Agreements: Recognizing vital commercial agreements across key sectors, including energy and semiconductors, which will further expand U.S. exports to the European market.

    • Military Equipment: The EU has committed to acquiring substantial amounts of U.S. military equipment.

  • President Trump’s America First economic agenda continues to restore industrial strength, secure energy dominance, and position the U.S. as the premier hub for advanced manufacturing and industrial investment.
  • Within just six months, President Trump has reaffirmed America’s status as the world’s most appealing destination for investment and the unmatched leader in innovation and advanced manufacturing.
  • While previous administrations have grappled with securing a significant trade deal with the European Union, this latest agreement showcases President Trump’s ability to deliver results through bold leadership, economic prowess, and unwavering determination.

FREEDOM FROM UNFAIR TRADE PRACTICES: Since his inauguration, President Trump has consistently challenged the long-held belief that American workers and businesses must accept unfair trade practices that have historically undermined them and contributed to our record trade deficit.

  • On April 2, President Trump declared a national emergency in response to the persistent U.S. goods trade deficit, attributing it to a lack of reciprocity in bilateral trade, unfair tariffs, and economic policies from trading partners that have suppressed domestic wages and consumption.
  • Continuing to bolster the economic and national security interests of the American populace, President Trump is dismantling tariff and non-tariff barriers while expanding market access for U.S. exporters.
  • Today’s announcement represents a landmark opening to the second-largest economy globally, reestablishing a robust, long-term relationship between the United States and its key ally, the European Union.

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