A major deal between the United States (U.S.) President Donald Trump and European Commission Chief Ursula von der Leyen could ease growing transatlantic trade tensions. Under the new agreement, the U.S. will charge a 15% tariff on most European Union (EU) exports, cutting down the 30% rate that was set to begin on August 1, 2025. This EU response to trump tariffs helps avoid a full trade conflict.
As part of the updated trump tariff updates, EU products like vehicles, chips, and medicines will now be taxed at 15%. However, some key items—such as airplane parts, certain chemicals, and food products—will see no tariffs at all, thanks to a special “zero‑for‑zero” exception. The EU also agreed to buy more American energy and defense products as part of nonbinding commitments over 3 years.
Trump hailed the deal as “the biggest ever,” while von der Leyen said it would give businesses more certainty moving forward. EU negotiator Maroš Šefčovič backed the deal, saying it was better than heading into a trade war with Washington.
EU Response to Trump Tariffs Sparks Mixed Reactions
Still, not everyone is happy. Critics argue that the Trump EU tariff outcome benefits Trump more than Europe. French officials called the agreement a “dark day,” accusing the EU of backing down too easily. Economists also pointed out that some areas, especially medicine, are temporarily exempt from tariffs until a U.S. review concludes.
EU countries are reacting differently. Germany welcomed the decision, saying it helps prevent further tension. German companies, however, warned that even the 15% tariff could hurt business. Ireland expressed relief but said they would have preferred a better rate.
The deal still needs final approval from all EU members. If talks fall apart, the EU is ready to hit back with $109 billion in tariffs on American products. Von der Leyen had initially aimed for a full EU response to trump tariffs based on removing all duties, but pressure from Trump pushed talks toward compromise.
This Trump tariff appeal adds to a string of trade wins Trump has secured recently, including a finalized deal with Japan and advanced talks with the UK. For now, both sides say the new arrangement will help stabilize trade as of July 29, 2025.
EU leaders are defending their decision, saying this was the most practical path forward. They believe the deal brings needed stability in both economic and security ties between the U.S. and Europe.
