EU and the USA conclude customs deal: the “biggest deal”: that means the agreement in the customs dispute

Donald Trump and EU Commission President Ursula von der Leyen sat unite side by side when they announced the end of the monthly customs dispute. “It is a huge deal with many countries,” said Trump in the large hall of his Scottish golf resort. “I think that’s the biggest deal that has ever been done.” The employees of both sides applauded.

This means the agreement that Europe and the USA will “bring together” according to Trump:

What have the EU and the United States agreed on?

The tariffs of 30 percent threatened on August 1st are averted to the import of European products. Instead, there should be a basic customs set of 15 percent on most products. According to the Leyen, this also applies to the cars, semiconductors and pharmaceutical products. The agreement creates a framework for the future reduction in tariffs to other products.

Were there any other concessions on the EU side?

According to Trump, the EU assures Trump to buy energy worth $ 750 billion and to invest an additional $ 600 billion in the United States. There should also be more arms transactions. According to the Leyen, there are said to be zero -seamed zero -tolls for a number of strategic products, including aircraft and aircraft parts, certain chemicals and certain agricultural products.

Why did the EU accept the deal?

If there had been no agreement, other US tariffs had threatened. The EU wanted to prevent escalation because this would have threatened trade and jobs. In addition, there was concern that Trump could build new threats in the event of a tightened conflict, for example by once again questioning military assistance within NATO or supporting support for Ukraine again – both are extremely sensitive issues in view of the threats from Russia.

If the Europeans were not so dependent on the United States in the field of defense, they might not have accepted the deal. Economically, the EU, with around 450 million citizens in 27 countries, is a real market power that could hardly affect the United States in a trade conflict.

Which tariffs had Trump already imposed?

In addition to a basic customs set of ten percent, the US government under Trump had introduced extracölle of 25 percent on the import of cars and car parts, so that the customs set was last 27.5 percent before the deal. The 15 percent now valid are the best that was to be achieved, said von der Leyen. According to Trump, the customs set remains 50 percent for steel and aluminum products. According to information from EU circles, however, certain quantities should be excluded, as was the case before Trump’s taking office.

The fact that Trump can maintain the base customs set of 15 percent is likely to flush additional income in the US state fund at a billion dollar height. According to EU information, the average US customs set was on imports from the EU in practice before Trump’s taking office, only about 1 percent and thus just as low as the EU’s duty rate on US imports-at least if you only use the actual trading between the EU and the USA.

In 2023, the United States raised tariffs of around seven billion euros to EU exports, and the EU raised tariffs of around three billion euros to US exports.

How does Germany stand by the deal?

Germany urged an agreement early. Chancellor Friedrich Merz (CDU) last said: “This is not a finely chased, extensive trade agreement with the United States in all details. This is now about the quick settlement of a customs dispute.” Among other things, he referred to the high tariffs that Trump had already introduced for the import of cars and car parts to the USA.

What does the agreement mean for the German economy and consumer?

That will probably only be evident in the next few months. It is good that the uncertainty is reduced a bit. It is bad that part of the US tariffs are maintained. Customs usually make products more expensive and thus brake the trade. It is therefore still conceivable that German companies have to lose business in the USA and reduce jobs.

How would the EU have reacted in the event of an escalation?

The EU Commission had threatened retaliation. This included tariffs on US products such as aircraft, motorcycles, beef, whiskey and citrus fruits. In addition, export restrictions for certain goods such as steel scrap or chemical products as well as a sales tax for US tech groups were considered.

How did Trump justify his customs course?

Trump argued with an alleged trade weight between the USA and the EU. He also wanted to bring industrial production back to the USA with his course under the motto “America First”. The additional customs income should also help to counteract its extensive tax cuts.

How does the EU judge Trump’s tariffs?

The European Commission basically considers the new US tariffs unjustified. In their view, they also clearly and blatantly violate fundamental rules of the world trade organization (WTO).

Is the deal permanent or just a temporary solution?

Immediately before the top conversation, Trump said that the customs dispute would end with a deal. He assumes that in such a case it would take at least a few years before discussions were necessary again.

What kind of trading volume is it about?

According to the EU, the European Union and the United States have the most comprehensive bilateral trade and investment relationships in the world and the closest economies that interlock together. Together they make up almost 30 percent of the world’s trade in goods and services and 43 percent of global economic output. In 2024, transatlantic trade in goods and services was more than 1.68 trillion euros according to EU numbers. The EU and the USA were the most important goods trading partner for each other.

Do the United States really have a clear trade deficit?

According to the latest figures from the Eurostat statistics office, the EU posted a significant surplus of around 198 billion euros in goods trading with the USA in 2024. In 2024, for example, around 533 billion euros were carried out to the United States and only imported goods worth around 335 billion euros from the USA.

In the service sector, on the other hand, the EU has a trade deficit with the United States, so that the EU claims to have a trade surplus of 50 billion euros in 2024. “This corresponded to less than 3 percent of the total trade between the EU and the United States,” is argued in Brussels.