Trump announces biggest trade deal ever with EU, finalises 15% tariff on all goods
During a discussion with European Commission President Ursula von der Leyen, Trump said that the 27-nation EU bloc has agreed to purchase $750 billion worth of energy from the US and to make an additional investment of $600 billion.
New Delhi: US President Donald Trump has announced that Washington and the European Union (EU) have reached an agreement on a trade deal. Trump described the agreement as the biggest deal ever. A 15 per cent tariff will be applied on all goods from the EU, and final arrangements have been made for large-scale purchases of energy and military equipment. The EU has also pledged investments in US.
"We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," said Trump.
During a discussion with European Commission President Ursula von der Leyen, he said that the 27-nation EU bloc has agreed to purchase $750 billion worth of energy from the US and to make an additional investment of $600 billion.
EU to purchase $750 billion worth of energy from US
Trump said, "This is a major deal with many countries, as Ursula represents several nations, not just one. The EU is going to purchase $750 billion worth of energy from us. They're also going to invest in the US—$600 billion more than before. They are agreeing to open up their markets for zero-tariff trade. They're also agreeing to purchase military equipment in large quantities. We don't know the exact figures yet, but the good news is—we make the best military equipment in the world."
He added, "As long as no one surpasses us—which they won't—we’re way ahead of every other country in terms of military technology. We've also agreed on a flat 15 per cent tariff for automobiles and everything else. I think the deal is essentially done." Trump said the deal will come into effect from August 1.
'Good deal, will bring stability'
"It's a good deal," the EU chief told reporters. "It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic, " said the EU president.
She added, "The trade deal brings stability, which is crucial for businesses across the Atlantic. Fifteen percent is not to be underestimated, but it is the best we could get," von der Leyen acknowledged. Any deal will have to be approved by EU member states.
The deal is significant after Trump announced a 30 per cent tariff on EU imports from August 1. Currently the bloc was subjected to 25 per cent levy on cars, 50 percent on steel and aluminium, and 10 per cent across-the-board tariff.