The EU has agreed to what looks like the not most clever trade deal in history with the US. The EU will pay a flat 15% tariff for European exports to USA and has agreed to invest -pay- hundreds of billions for the privilege that it will not be charged with 30% tariffs as US President Donald Trump had originally proposed and thus to be on affect as of August 1, 2025. In return,there is no increased tariffs to be paid by the US for exports to the European bloc.
The move from average tariffs of less than 2% on trade between the USA and Europe to 15% under Sunday’s deal does not seems to be the most clever deal the Eu commission president could have reached. It will inevitably lead to inflation, and almost everything will become more expensive for both the European and American citizens.
President Trump declared on Sunday what he called “the greatest trade deal ever made” between the United States and the European Union, following high-level talks with European Commission President Ursula von der Leyen in Scotland.
As part of the agreement, Trump revealed that U.S. tariffs on European exports will be set at 15%. He clarified that existing tariffs on steel and aluminum imports from Europe will remain unchanged.
In return, the European Union has committed to a major purchase and investment package. According to Trump, the EU will buy 750 billion dollars worth of American energy and military equipment.
Additionally, the bloc will invest another 600 billion dollars in the U.S. economy on top of existing commitments.
“The European Union is going to agree to purchase 750 billion dollars in energy products from the United States,” Trump said. “And it will also agree to invest an additional 600 billion dollars in the United States beyond what it already does. Congratulations on the deal,” he added.
Reacting to the announcement, von der Leyen said the agreement “will bring stability,” marking what both sides suggest is a turning point in transatlantic trade relations.
Together, the EU and the US are a market of 800 million people.
And nearly 44 percent of global GDP.
It’s the biggest trade deal ever ↓ https://t.co/rG3cHebXEk
— Ursula von der Leyen (@vonderleyen) July 27, 2025
There is nothing to celebrate. Moving from average tariffs of less than 2% on trade between the USA and Europe to 15% under today’s deal will inevitably lead to inflation. Almost everything will become more expensive in both Europe and the USA, and we will all be worse off. The…
— Rasmus Jarlov (@RasmusJarlov) July 27, 2025
The trade deal is a win for Donald Trump but a defeat for the EU with Commission President von der Leyen to have shown again how weak she and the European bloc are. It loses a large part of its independence becoming an economic, energy and defense vassal of the USA.
Of course, And the question remains where the 600 billion for investments in the US and the 750 billion for energy purchases from the US will come from.
So far, there are no reaction by 27 EU member states leaders on the deal. But, of course, the leaders will not pay from their own pockets neither the 600 billion for investment nor the 750 billion for energy purchases. Guess, where will this money come from…On the side note: the whole of the EU spends 600 billion euros for energy.
Did anyone really expect this useless and corrupt von der Leyen to negotiate a good deal? Look what she did with the Covid vaccine negotiations: held in private, no records (which is unlawful) and a bad outcome that forced EU countries to pay for too large a quantity at too high a price! Of course, we can only guess how much she took in kickbacks. Given her reputation when a government minister in Germany, one might imagine that she made a lot of money, illegally. She and Trump are quite similar in their obsessions with money acquired by corrupt means.
Putin said this in February “I assure you: Trump, with his character, with his persistence, he will restore order there quite quickly. And all of them, you will see — it will happen quickly, soon — they will all stand at the feet of the master and will wag their tails a little. Everything will fall into place,” So far Rutte and Van der Leyen both had their daddy moment.
This is a sad day for us Europeans, we gave away our cheap energy, now we have no bargaining chips