Trump announces 15% baseline tariff framework in new US trade agreements
Former Trump economic adviser Stephen Moore commented on his economic remarks on the European Union, the president’s tariff policy, and the US trade deal with U.S. Secretary of Commerce Luttonix.
president Donald Trump On Sunday, the US and the European Union announced that they had reached an agreement on the trade contract framework.
Trump and the European Commission’s Ursula von der Leyen announced the deal following a meeting in Scotland. Customs policy It was fluid for much of the year.
“We agree that the automobile and all other tariffs will be linear 15%,” Trump said. “So we have a 15% tariff. We have all the opening of European countries.
Under the terms of the trade agreement, almost all goods from the EU will be subject to a baseline tariff of 15%. This is lower than the 20% “mutual” tariffs that Trump announced at his “liberation day” event in early April, but significantly higher than the 2.5% tariffs last year.
Investor sentiment rises after the euro, US EU agrees to trade trading framework
President Donald Trump will shake hands with President Ursula von der Leyen of the European Commission in Turnbury, UK, Scotland, following the announcement of the US EU trade agreement on July 27, 2025. (Photo by Reuters/Evelyn Hockstein/Reuters)
As Trump referenced, tariffs Cars and Auto Parts Face 15% tariffs. This is lower than the 27.5% collected at EU Autos earlier this year.
Drugs and semiconductor tariffs will be temporarily subject to 0% tariffs until the US closes its section 232 trade investigation into the security impact of these products in the coming weeks. The results are used to impose new ones Global tariff rates In those sectors.
European medicine Furthermore, semiconductors do not face tariffs above 15%, regardless of the tariff rates applied to other countries. Similarly, the tariffs on wood and copper are determined after separate section 232 investigations, but not exceed 15%.
US 50% tariff Steel and aluminum The US and the EU have agreed to replace its tariffs with a quota system where both parties negotiate, but it is expected to remain in the short term.
European steel exports within the quota face tariffs at the most preferred country’s tariff rates under the regulations of the World Trade Organization. In contrast, EU steel exports outside the quota face 50% tariffs.
Trump has secured a historic $5500 billion trade deal with Japan: “It’s never been that.”
President Donald Trump’s EU trade agreement follows the announcement of a trade agreement with Japan last week. (Andrew Caballero-Reynolds / AFP Getty Images / Getty Images)
The US and the EU will zero tariffs on a variety of goods, including aircraft and their components. Certain chemicals and generic drugs. With Semiconductor manufacturing Equipment, natural resources, important raw materials.
Some produce falls under the zero tariff regime, but excludes sensitive products such as beef, rice, ethanol, sugar and chicken. Other products are expected to be added to the Zero tariff list between the US and the EU, but neither of them has established wine and spirit tariff rates.
Additionally, the deal included a commitment by the EU to make a strategic $750 billion purchase from the US, including oil. Liquefied natural gas (LNG) and nuclear technology for the remainder of Trump’s term.
These include spot purchases of oil, long-term LNG contracts, nuclear technology, and the amount estimated during the European planning stage of energy purchases from Russia.
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Duties are taxes on imports paid by importers, and importers often pass on some or all of the higher costs to consumers at higher prices. (Photo by Qian Weizhong/VCG via Getty Images)
The EU is also expected to purchase more than $750 billion in other strategic purchases of semiconductors from the US, with the US serving as its chip’s preferred vendor.
European companies are also expected Invest $600 billion In the US, the remainder of Trump’s second term. EU officials said the figures were based on a combination of investment intentions expressed by European companies, but said the ultimate actions of these private companies exceed control of the EU, an economic and government bloc.
Additionally, the investment agreement differs from the terms achieved between the US and Japan last week. Under these terms, Japan’s investments of up to $550 billion will cover stocks, loans and guarantees from state-owned institutions at Trump’s discretion.
The US-EU trade agreement framework also shows that EU countries commit to purchases US military equipmentalthough the amount is not specified by the transaction.
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Prior to the contract with the EU, the Trump administration signed a contract with Japan last week. Dealing with China.
“When Japan broke down and traded, the EU had very few options,” said Jamie Cox, managing partner at Harris Financial Group. “The biggest part of the trade contract puzzle is still there, and it’s unlikely that the Chinese are willing to fold. The next big, durable theme in the market is security, and the EU will only accelerate it.”
Bradford Betz and Reuters of Fox News Digital contributed to this report.