President Trump and European Commission President Ursula von der Leyen announced Sunday that the US and EU had agreed to the framework of a trade deal that included a baseline tariff rate of 15% on EU goods imported into the US.
Trump, speaking after negotiations in Scotland on Sunday, called the deal “the biggest of them all,” while von der Leyen said that “15% is not to be underestimated, but it is the best we could get.” Other details of the framework are still being confirmed.
Trump also confirmed on Monday that 15% represents the new standard for tariff negotiations.
“For the world, I would say it’ll be somewhere in the 15% to 20% range,” Trump said in Scotland as he met with UK Prime Minister Keir Starmer.
Meanwhile, the South China Morning Post, a Hong Kong-based English-language newspaper, reported that “Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.”
On Friday, Trump said that letters dictating tariff rates for over 200 countries would go out soon while his administration works to clinch deals with larger trade partners. Trump said the US hasn’t had a “lot of luck” with Canada and suggested he may impose threatened 35% levies on goods not covered by the US-Canada-Mexico trade agreement.
Last week, Trump touted a deal with Japan that included a $550 billion investment in the US and a 15% tariff on goods imported into the US from Japan. On Saturday, Japanese trade negotiator Ryosei Akazawa suggested the money could be used to help finance an unnamed Taiwanese chipmaker building plants in the US.
“For example, if a Taiwanese chipmaker builds a plant in the US and uses Japanese components or tailors its products to meet Japanese needs, that’s fine too,” he said.
In March, Taiwan’s TSMC announced a $100 billion investment in the US, on top of plans to build three plants in Arizona, one of which is already operating.
In any case, the Japan trade deal may have set a precedent for Trump’s new baseline tariff rate. Trump said tariffs would range from 15% to 50%, with tougher partners facing higher rates. That’s a step up from the 10% baseline duties currently in effect..
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1529 updates
Analysis: Out-gunned Europe accepts least-worst US trade deal
Reuters reports:
Read more here.
What’s in the US-EU preliminary trade agreement?
On Sunday, President Trump and European Commission President Ursula von der Leyen announced a preliminary trade agreement, avoiding an all-out trade war. Here’s what we know about the terms the two sides agreed to, per Reuters:
Several questions still remain unresolved, however. Here’s what remains to be seen when the US and EU reveal a joint statement on Aug. 1:
Read more here.
Clock is ticking for a US-China trade deal. Negotiators are meeting to buy more time
CNN reports:
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‘Donald Trump ate Ursula von der Leyen for breakfast’: How EU leaders are reacting to the US trade deal
Europe’s reaction to its trade deal with the US is decidedly mixed so far. As we detailed earlier, the deal represents the “least-worst” option for Europe, which was facing 30% duties on its imports to the US.
So EU leaders have put on a brave face, saying that they hope this breakthrough is but the first step toward a more favorable, longer-term agreement.
Bloomberg rounded up some initial reaction. One that stood out: Hungarian Prime Minister Viktor Orban, a Trump ally:
From the German chancellor:
Italian Prime Minister Giorgia Meloni called the agreement “sustainable”:
France took a more hawkish approach:
Finally, from Slovakia:
Read more here.
Why Big Alcohol needs US tariff relief in five charts
European Union wine and spirits producers could emerge as one of the few winners in the US-EU trade deal which was agreed on Sunday.
Reuters reports:
Shares in Pernod, Diageo and Campari initially rose in early trade. But they stood 1.3%, 0.4% and 0.3% lower by 0707 GMT. Shares in Remy fell 2.2%.
Alcohol is among the EU’s top exports to the United States, worth about $10.5 billion in 2024, according to Eurostat data, with certain products like Remy Martin cognac and champagne required to be produced in specific European regions.
The United States accounts for about 18% of exports for another exclusively French product, champagne.
For cognac makers, the U.S. tariffs represent a fresh challenge after producers of the drink managed this month to avert the threat of duties of up to around 35% from China.
For Spanish and Italian wines, around 14% and 24% of total exports, respectively, are sold in the United States.
Stock in focus after US/EU trade deal: ASML
Semiconductor play ASML (ASML) getting a lot of mentions on the Street this morning as a winner from the US/EU trade deal.
Shares are up nearly 5% in pre-market trading. I would note ASML just a week ago issued weak guidance that hammered the stock, so be mindful of that.
Here’s what JP Morgan had to say this morning:
“ASML had indicated in its Q2 results that it saw hesitation (and thus lack of orders) from customers to order tools for their new US fabs due to the risk of tariffs on semiconductor equipment. If this information from the US on zero tariffs on semiconductor equipment is correct then this would be very positive for ASML in particular, but also for VAT. Other semiconductor equipment companies in Europe, such as ASM International (ASM.AS) manufacture their tools outside the EU and thus deals with countries such as Singapore, Malaysia and the US will be important for those companies.”
Donald Trump freezes export controls to secure trade deal with China
The FT reported on Monday that President Donald Trump has frozen restrictions on technology exports to China in order to avoid hurting trade talks with Beijing and to help secure a meeting between Trump and President Xi Jinping this year, according to people familiar with the matter.
The US Commerce Department’s Bureau of Industry and Security, which is in charge of export controls, has been advised to avoid tough moves on China, according to eight people, including current and former US officials.
The US and China are due to meet in Stockholm on Monday for a third round of trade talks following previous meetings in Geneva and London.
The FT reports:
Read more here (subscription required).
Heineken cheers EU-US trade deal as tariff problems grow
Dutch brewer Heineken (HKHHY, HEIO.AS) said on Monday that it welcomed the trade deal between the European Union and the US and that it was weighing all options to deal with growing tariff challenges in the long term, including shifting manufacturing.
Reuters reports:
Read more here.
Japan expects 1%-2% of $550 billion US fund to be investment
Japan confirmed that only a small part, just 1% to 2%, of the $550 billion deal with the US will be actual investment. Most of the money will be in the form of loans, according to Japan’s trade negotiator Ryosei Akazawa.
Akazawa said that Tokyo will save roughly $68 billion through lower tariff rates in its deal with the US.
The details revealed by Akazawa on Saturday via an interview with public broadcaster NHK, suggest the Japanese may end up giving up much less than at first glance.
The $550 billion investment framework combines loans, investments and loan guarantees provided by financial institutions backed by the Japanese government.
Bloomberg News reports:
Read more here.
VW’s Audi cuts full-year outlook, citing tariffs and restructuring
Following Volkswagen’s (VOW3.DE, VWAGY) guidance cut last week, the German carmakers premium brand Audi has also cut its full-year guidance, citing the impact of higher US import tariffs and restructuring expenses.
Reuters reports:
Read more here.
EU-US trade deal undermines bloc claims of negotiating power
The US-EU trade deal has the potential to roll back months of EU posturing as a leading global economic force. This is based on the argument that the bloc has been pushed into accepting a “least-worst” deal after failing to bring suitable leverage to the trade table.
Reuters reports:
Read more here.
Sun, July 27, 2025 at 9:49 PM UTC
Italy’s Meloni awaiting details but says trade deal ‘positive’
As many of the specifics of the trade deal between the EU and US remained unclear Sunday, at least one European Union leader said she was awaiting more information before passing judgment on it. Italy’s Prime Minister Giorgia Meloni called it “positive’ that he agreement had been reached, but wanted to see the details, Reuters reports:
Read more here.
Sun, July 27, 2025 at 9:27 PM UTC
European Commission President Ursula von der Leyen noted that there isn’t yet a specific US-EU agreement on tariffs regarding wine and spirits between the two trading partners, among other unsettled details, and the Distilled Spirits Council of the United States is lobbying for an amicable resolution.
“We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for U.S. and EU spirits products, which will benefit not only our nation’s distillers, but also the American workers and farmers who support them from grain to glass,” the trade association’s president and CEO Chris Swonger said in a statement provided to Yahoo Finance. “For more than 20 years, large and small distilleries across the U.S. have flourished under a tariff-free relationship with the EU, our largest export market. It’s time to get back to toasts not tariffs.”
Sun, July 27, 2025 at 9:26 PM UTC
Pharma tariffs still a point of disagreement in EU-US trade deal
The trade deal ironed out between the EU and the US on Sunday has more than few wrinkles remaining, chief among them: What the levy on pharmaceuticals will be. Bloomberg reports:
Read more here.
Sun, July 27, 2025 at 8:17 PM UTC
Trump deal with Europe underlines new standard of (at least) 15% tariffs
From YF’s Ben Werschkul:
Read more here.
Sun, July 27, 2025 at 7:17 PM UTC
EU’s von der Leyen provides some detail on new deal
PRESTWICK, Scotland (Reuters) — European Commission President Ursula von der Leyen on Sunday said a U.S. baseline tariff rate of 15% on imported EU goods would apply to cars, semiconductors and pharmaceutical goods.
She also said that a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision had been taken on a rate for wine and spirits, she added.
“Today’s deal creates certainty in uncertain times, delivers stability and predictability,” von der Leyen told reporters before leaving Scotland
Sun, July 27, 2025 at 6:53 PM UTC
EU-US trade agreement reactions
Reuters gathered some market commentary after the US and EU announced the framework of a trade deal:
Read more here.
Sun, July 27, 2025 at 5:37 PM UTC
EU-US trade agreement preliminary details
Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen:
*TRUMP: WE HAVE REACHED A DEAL WITH EU
*TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY
*TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US
*EU’S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY
*VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS
The asserted details of the framework are not yet fully confirmed.
Sun, July 27, 2025 at 3:59 PM UTC
SCMP reports China-US another 90-day tariff extension
The South China Morning Post (SCMP) reported that “Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.”
More from the Hong-Kong-based SCMP:
Read more here.
Sun, July 27, 2025 at 2:01 PM UTC
Lutnick: EU has to offer Trump ‘a good enough deal’ to avoid 30% tariffs
As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he’s threatened to put in place August 1.
Reuters reports Lutnick said the EU appeared to want to make a deal:
On Friday, Trump said the odds of a trade deal with the EU were about “50-50,” even as negotiators from both sides expressed optimism.
Read more here.
