On July 27, 2025, President Trump and European Commission President Ursula von der Leyen agreed to a landmark trade deal at the Trump Turnberry resort in Scotland. The agreement, formalized in a joint statement on August 21, establishes a 15% tariff ceiling on most EU exports to the US and represents what USTR Jamieson Greer called the beginning of a "new international order."

The Core Framework: 15% Tariff Ceiling

Under the deal, the United States committed to apply the higher of either the US Most Favored Nation (MFN) tariff rate or a tariff rate of 15% on most goods from the European Union. This represents a significant reduction from the 30% rate Trump had initially threatened.

In exchange, the EU agreed to eliminate tariffs on all US industrial goods and provide preferential access for US agricultural products. The asymmetry—15% for EU exports, 0% for US exports—has been criticized by European leaders like German Chancellor Friedrich Merz, who called it a deal that would cause "considerable damage" to both economies.

Exemptions and Special Categories

Several product categories received special treatment under the agreement. Aircraft and aircraft parts, generic pharmaceuticals and their ingredients, and "unavailable natural resources" including cork are subject only to MFN tariff rates—a key win for the EU given its strong aerospace and pharmaceutical sectors.

Notably, wines and spirits were not included in the exempted products list, disappointing countries like France. EU Trade Commissioner Maroš Šefčovič emphasized that expanding the exemption list remains "a key deliverable for the EU" in ongoing discussions.

Steel and aluminum remain subject to the full 50% Section 232 tariffs, though the parties agreed to discuss "tariff-rate quota solutions" for EU exports in these categories.

EU Investment and Purchase Commitments

Beyond tariffs, the deal includes substantial EU commitments that the White House characterized as part of "fundamentally rebalancing" the transatlantic economic relationship:

• $750 billion in US energy purchases (LNG, oil, nuclear) through 2028
• $600 billion in EU investment in the United States by 2029
• $40 billion in US AI chips for European computing centers
• Commitment to adopt technology security requirements aligned with US standards

The European Commission has only confirmed the energy purchase commitments, with other figures remaining disputed between the two sides.

Implementation Timeline

The US moved quickly to implement its commitments. Executive Order 14326 of July 31, 2025 modified reciprocal duties, and automobile tariffs were adjusted retroactively to August 1, 2025 after the EU introduced its implementing legislation.

On November 28, 2025, the EU Council adopted negotiating mandates for two implementing regulations—one on customs duties and tariff rate quotas for US products, and another extending duty suspension on lobster imports.

The "Turnberry System"

USTR Greer has described the deal as heralding a "Turnberry System" that will replace the post-World War II "Bretton Woods" order he considers "untenable and unsustainable." Under this vision, bilateral deals with strong rules of origin replace multilateral WTO commitments.

Critics argue this represents an abandonment of the rules-based trading system, with the EU implicitly accepting US demands by agreeing to provide preferential trading terms outside the WTO framework.

European Reactions

Reaction across Europe has been mixed. Commission President von der Leyen defended the deal as delivering "stability and predictability" and as "good, if not perfect." Trade Commissioner Šefčovič called it "the best we could get under very difficult circumstances."

Others were more critical. Dutch caretaker Prime Minister Dick Schoof noted that "no tariffs would have been better." German Chancellor Merz called the deal harmful to both parties. Some characterized EU acceptance of the deal as "acquiescence" to US pressure.