The United States and European Union have reached a major trade agreement, ending months of tension between the two global economic powers. The breakthrough came after intense negotiations between US President Donald Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry golf resort in South Ayrshire, Scotland.

Under the new deal, the US will impose a 15% tariff on all EU goods — half of the 30% rate previously threatened by the Trump administration. In return, the 27-member bloc has agreed to open its markets to selected US products with zero percent tariffs on specific goods.

“We have reached a deal. It’s a good deal for everybody,” Trump said after the meeting. “It’s going to bring us closer together.”

Von der Leyen also described the deal as a “huge deal” achieved through “tough negotiations,” adding that it would “bring stability for both allies,” who together account for nearly one-third of global trade. She called it a “framework” agreement, with technical details to be finalized in the coming weeks.

While the deal must still be approved by EU member states, it marks a significant development in transatlantic relations, particularly as Trump has aggressively used tariffs to reshape global trade. Prior to this, he had also negotiated separate agreements with the UK, Japan, Indonesia, the Philippines, and Vietnam — though he has fallen short of his “90 deals in 90 days” pledge.

Trump emphasized that the EU would increase investment in the US by $600 billion over the next three years, including large purchases of American military equipment and energy. Von der Leyen confirmed that the EU would spend $750 billion on American liquified natural gas, oil, and nuclear fuels, describing it as a move to reduce Europe’s dependence on Russian energy.

Certain goods, such as aircraft parts, some agricultural products, and specific chemicals, will not face any tariffs under the new deal. Talks are also reportedly underway on a separate agreement involving semiconductors.

However, not all sectors are satisfied. France’s European Affairs Minister, Benjamin Haddad, expressed concern that while some key French industries like spirits were protected, the deal overall was “unbalanced.” He stated, “The trade agreement negotiated by the European Commission with the United States will bring temporary stability to economic actors threatened by the escalation of American tariffs, but it is unbalanced.”

The 50% US tariff on global steel and aluminum remains in place, a point that has raised concerns in parts of Europe. Furthermore, key EU members like France and the Netherlands are still pushing for exemptions on wine and beer exports.

Irish Prime Minister Micheál Martin acknowledged the agreement but warned that higher tariffs than before would make trade “more expensive and more challenging.” Ireland is among the EU countries most reliant on the US as an export destination.

Germany’s Chancellor Friedrich Merz welcomed the resolution of tensions, warning that a trade conflict would have severely impacted German industry. “Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike,” he said.

Italian Prime Minister Giorgia Meloni reacted cautiously, noting that she was awaiting full details of the agreement.

The deal also has significant implications for the US. Based on last year’s trade figures, it could generate roughly $90 billion in tariff revenue while securing hundreds of billions in investment. Trade in goods between the EU and the US totaled about $976 billion last year, with the US importing $606 billion and exporting $370 billion — a trade deficit Trump has repeatedly called unfair.

“If the US had proceeded with the full 30% tariff threat, it would have affected everything from Spanish pharmaceuticals and Italian leather to German electronics and French cheese,” an EU official said.

The agreement, reached after Trump played 18 holes of golf with family and guests, was announced just ahead of a planned meeting between Trump and British Prime Minister Keir Starmer at Turnberry on Monday. Trump is scheduled to be in Aberdeen on Tuesday for the opening of a new golf course.

Von der Leyen concluded: “I want to thank President Trump personally for his personal commitment and his leadership to achieve this breakthrough. He is a tough negotiator, but he is also a dealmaker.”