The United States and the European Union this week reached a trade agreement, establishing a 15% tariff on most EU imports into the U.S., averting the threat of a larger trade war. The deal maintains existing 50% tariffs on steel and aluminum but creates zero-tariff provisions for key sectors, including aircraft and parts, select chemicals, semiconductors, agricultural goods, and critical raw materials.

In exchange, the EU agreed to purchase up to $750 billion in U.S. energy over three years, invest $600 billion in U.S. markets, and explore additional purchases of U.S. military equipment.

President Donald Trump hailed the deal as a major victory for U.S. businesses, while European leaders welcomed the predictability it brings to trade relations. Critics, however, warned that the framework could face challenges if EU commitments falter or political opposition grows, raising concerns over the agreement’s long-term stability. 7/27/2025