United States President Donald Trump on Sunday announced a new trade agreement with the European Union that imposes a 15 per cent tariff on most European imports.

These includes automobiles, averting a previously threatened 30 per cent tariff hike.

The deal was unveiled after high-stakes negotiations with European Commission President, Ursula von der Leyen, ahead of an August 1 deadline.

While the 15 per cent rate is a compromise, it still exceeds the EU’s preferred 10% threshold.

Exemptions apply to key sectors such as aerospace components, chemicals, and pharmaceuticals, von der Leyen said during a post-announcement briefing.

She emphasized that the new tariffs would not stack on top of existing ones.

As part of the agreement, the EU has committed to purchasing $750 billion worth of U.S. energy products and to boosting its U.S. investments by $600 billion above current levels.

Trump also claimed the bloc would buy “hundreds of billions of dollars” in U.S. military equipment, though no specific figures were disclosed.

Calling it “the biggest of all the deals,” Trump framed the agreement as a strategic win for American manufacturing, energy, and defense industries.

“It’s a very powerful deal, it’s a very big deal, it’s the biggest of all the deals,” Trump said Sunday alongside von der Leyen.

“It’s a good deal, it’s a huge deal, with tough negotiations,” von der Leyen said after the meeting.

The agreement marks a pivotal moment for President Trump, following weeks of uncertainty surrounding the U.S.-EU trade talks.

The deal not only averts a potential escalation in tariffs but also strengthens economic ties between two of the world’s largest trading blocs.