Fact Sheets

# Fact Sheet: The United States and European Union Reach Massive Trade Deal

The White House
July 28, 2025

MAKING GLOBAL HISTORY: Yesterday, President Donald J. Trump announced a trade deal with the European Union (EU), fundamentally rebalancing the economic relationship between the world’s two largest economies.

- The deal marks a generational modernization of the transatlantic alliance and will provide Americans with unprecedented levels of market access to the European Union.
- The deal bolsters America’s economy and manufacturing capabilities. The EU will purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028.
- Through decisive leadership and an unyielding commitment to American workers, President Trump has delivered yet another agreement that positions the United States as the world’s preeminent destination for investment, innovation, and advanced manufacturing.

REACHING A HISTORIC TRADE DEAL: President Trump’s agreement with the European Union achieves historic structural reforms and strategic commitments that will benefit American industry, workers, and national security for generations:

- The United States and European Union reached a Cooperation Agreement on Reciprocal, Fair and Balanced Trade.
- This colossal deal will enable U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit with the European Union. The EU will remove significant tariffs, including the elimination of all EU tariffs on U.S. industrial goods exported to the EU, creating enormous opportunities for American-made and American-grown goods to compete and win in Europe. This new market access will drive growth across the American economy—fueling exports, expanding production, and allowing American businesses of all sizes to reach millions of new customers across the Atlantic.
- As part of President Trump’s strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15%, including on autos and auto parts, pharmaceuticals, and semiconductors. However, the sectoral tariffs on steel, aluminum, and copper will remain unchanged—the EU will continue to pay 50% and the parties will discuss securing supply chains for these products. This new tariff regime will generate tens of billions of dollars in revenue annually and help to close the longstanding trade imbalance between the United States and Europe by encouraging local sourcing, reshoring production, and ensuring that foreign producers contribute their fair share to the American economy.
- Additional key terms of the U.S.-European Union Agreement will include:
  - Massive EU Investment in the United States: The EU will invest $600 billion in the United States over the course of President Trump’s term. This new investment is in addition to the over $100 billion EU companies already invest in the United States every year.
  - Unleashing American Energy: The EU will double down on America as the Energy Superpower by purchasing $750 billion of U.S. energy exports through 2028. This will strengthen the United States’ energy dominance, reduce European reliance on adversarial sources, and narrow our trade deficit with the EU.
  - Tariff Barriers: The European Union will work with the United States to eliminate tariffs in various sectors and will provide meaningful quotas for other products, which when combined will create commercially meaningful market access opportunities for a significant amount of U.S. goods exports to the European Union, supporting high-quality American jobs.
  - Non-Tariff Barriers for U.S. Industrial Exports: The European Union will work to address a range of U.S. concerns related to various EU requirements that are burdensome to U.S. exporters, particularly small and medium-sized businesses, including through efforts to eliminate the red tape that U.S. exporters face when doing business in the European Union.
  - Non-Tariff Barriers for U.S. Agriculture Exports: The United States and the European Union intend to work together to address non-tariff barriers affecting trade in food and agricultural products, including streamlining requirements for sanitary certificates for U.S. pork and dairy products.
  - No Free Riders: The United States and the European Union will establish strong rules of origin to ensure that the benefits of this agreement flow directly to the United States and the European Union, not to third countries.
  - Barriers for Digital Trade: The United States and the European Union intend to address unjustified digital trade barriers. In that respect, the European Union confirms that it will not adopt or maintain network usage fees. Furthermore, the United States and the European Union will maintain zero customs duties on electronic transmissions.
  - Economic Security: The United States and the European Union agree to strengthen economic security alignment to enhance supply chain resilience and innovation. The two sides will take complementary actions to address non-market policies of third parties, as well as cooperating on inbound and outbound investment reviews, export controls, and duty evasion.
  - Commercial Deals: The United States and European Union recognize a series of major commercial agreements across key sectors—including energy and semiconductors—that will further expand U.S. exports to the European market.
  - Military Equipment: The European Union agreed to purchase significant amounts of U.S. military equipment.
- President Trump’s America First economic agenda is restoring our industrial might, securing energy dominance, and making the United States the premier destination for advanced manufacturing and industrial investment.
- In just six short months, President Trump has reaffirmed the United States as the world’s most attractive destination for investment and the unrivaled leader in innovation, research, and advanced manufacturing.
- Other American Presidents have tried and failed to reach a significant trade deal with the European Union. With this latest deal, President Trump has once again proven that bold leadership, economic strength, and unwavering resolve deliver results no other leader could achieve.

LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: Since Day One, President Trump challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic trade deficit.

- On April 2, President Trump declared a national emergency in response to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity in our bilateral trade relationships, unfair tariff and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption.
- President Trump continues to advance the economic and national security interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters.
- Today’s announcement opens up historic market access to the second largest economy in the world, reestablishing the strong positive long-term relationship between the United States and its key ally the European Union.

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