US-EU Trade Deal Sets 15% Tariffs, Avoids Threatened 30% Rate

President Trump and European Commission President Ursula von der Leyen announced a new trade agreement that establishes a 15% U.S. tariff on most European Union imports while eliminating tariffs on American goods exported to EU member countries. The deal, revealed on July 28, 2025, represents a significant shift from previous trade arrangements where U.S. imports from the EU faced an average tariff of just 1.2%. Economists note this will increase the average tariff on EU imports to 17.5%, potentially reducing the EU's annual GDP by 0.2%.