Sopuruchi Onwuka

The President of European Commission, Ursula von der Leyen, succeeded in pulling President Donald Trump of the United States to best trade deal between the two powerful economic blocs, removing tariff roadblocks and allowing free flow of essential goods.

The deal which marks the hallmark of Trump’s European visit would now de-constrain the $1.9 trillion transatlantic trading relationship after stakes were high on looming August 1 deadline issued by the American president

Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods, with the 27-country bloc also winning bilateral tariff exemptions on some products. The deal pushes aside the 30 percent tariff earlier threatened by the US.

According to sources close to Trump who is on tour of some European nations, discussions with von der Leyen on resolving lingering trade disputes over reciprocal tariff regime of the American president formed the key focus of global leaders and economic analysts.

The deal also brings relief for EU’s auto sector hit by Trump with cumulative 27.5 percent tariffs, with implication on significant 13 million jobs

Under the new pact, President Trump also triumphs with a number of trade wins for the US, as the EU committed to buy $750 billion of liquefied natural gas (LNG), oil and nuclear fuels from the United States over three years to replace Russian energy sources.

Trump also secured agreements for $600 billion new investments from EU countries in addition to purchase of hundreds of billions of dollars’ worth of US made military equipment.

For the EU, Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals, a critical export for Ireland, which the bloc has sought to protect.

Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs.

The parties also agreed to a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said.

The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump.

It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism.

“Between us, tariffs will be cut and a quota system will be put in place,” she said.

The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out.

Von der Leyen described the deal as a “framework” agreement. “Details have to be sorted out, and that will happen over the next weeks,” she said.

She said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively.

“This is something which has to be sorted out in the next days,” von der Leyen said..

The EU chief declared on Sunday evening that “We have also agreed on zero-for-zero tariffs on a number of strategic products,” following crunch talks with US President Donald Trump in Scotland.

She said the products included certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials.

The Oracle gathered that any deal would need to be approved by all member states. EU ambassadors, on a visit to Greenland, were updated on the negotiations by the Commission on Sunday morning, and would meet again after any agreement.

In expressing relief on resolution of the trade impasse with the United States, von der Leyen thanked President Trump for making the deal possible as the tariffs could have been worse.

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

For the US the deal equates to the expectation of roughly $90 billion of tariff revenue into government coffers based on last year’s trade figures, plus the hundreds of billions of dollars of investment now due to come into the US.

Previously the EU has argued the relationship is not out of balance as the EU buys far more services from America than it sells to them.

The trade deal came after the US president finished 18 holes at the Turnberry resort with guests and family, including his son Eric, amid showery conditions.

IT was reported that trade in goods between the EU and US totaled about $976bn last year when the US imported about $606bn in goods from the EU and exported around $370bn in 2024. And the trade deficit has remained a sticking point for Trump who insists that the US was losing the trade with EU.

The deal yesterday staved off a trade war that targeted a range of European products from Spanish pharmaceuticals to Italian leather, German electronics and French cheese with killer tariffs. And Europe was prepared to axe US goods including car parts, Boeing planes and beef.

The Irish Prime Minister, the Taoiseach Micheál Martin, noted the fact that tariffs would still be higher than before, making trade “more expensive and more challenging”.

Among EU countries, Ireland is the most reliant on the US as an export market.

Germany’s Chancellor Friedrich Merz posted on X that a trade conflict would have hit Germany hard.

“Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike,” he added.

Italian Prime Minister Giorgia Meloni welcomed the deal, but said she needed to see the details, Italy’s Ansa news agency reported.

British Prime Minister Keir Starmer is scheduled to meet Trump at Turnberry on Monday.

The US president will be in Aberdeen on Tuesday, where his family has another golf course and is opening a third next month. Trump and his sons plan to help cut the ribbon on the new fairway.