Turnberry [Scotland], July 28 : US President Donald Trump on Sunday (local time) announced that Washington and the European Union have reached an agreement on the trade deal, finalising at a uniform 15 per cent tariff on all goods across the board and purchases of massive energy and military equipment and unprecedented investment commitments by the EU to its Atlantic partner.
Describing the agreement as the "biggest deal ever," Trump, during a discussion with European Commission President Ursula von der Leyen, as broadcasted by Fox News, hailed the agreement as a "giant deal with lots of countries," noting von der Leyen's representation of the 27-nation European Union.
He stated that the EU has agreed to purchase USD 750 billion worth of energy from the US and to invest an additional USD 600 billion, more than its current investment.
"This was probably the biggest deal ever reached in any capacity, trade or beyond trade. It is a giant deal with lots of countries because, as you know, Ursula represents a lot of countries, not just one. The European Union is going to agree to purchase from the United States USD 750 billion worth of energy. They are also going to invest in the United States, USD 600 billion more than they already are. They are also agreeing to open up their countries to trade at zero tariffs. That is a very big factor--opening up all the countries to trade with the United States at zero tariffs," Trump stated.
"They are agreeing to purchase a vast amount of military equipment. We don't know the exact number, but the good news is we make the best military equipment in the world. Until someone tops us, which won't happen, we are way ahead of every other country in terms of military technology. And we are agreeing on a straight 15 per cent tariff across the board for automobiles and everything else. I think that basically concludes the deal. Those are the main factors," he added.
Trump, who is currently in Scotland for a work visit, also noted that the deal will take effect from August 1.
Von der Leyen echoed Trump's enthusiasm, describing the agreement as a "huge deal" that ensures "stability and predictability" for businesses on both sides of the Atlantic.
"It's 15% tariffs across the board, all-inclusive. The investments President Trump just described will go to the United States. And the purchases on our side--yes, the European market is open," she stated.
She acknowledged the "tough negotiation" but expressed satisfaction with the mutually beneficial outcome.
"We have a deal. We have a trade deal between the two largest economies in the world. It's a big deal--a huge deal. It will bring stability and predictability, which is very important for businesses on both sides of the Atlantic. It's 15% tariffs across the board, all-inclusive," the EU Chief noted.
"The investments President Trump just described will go to the United States. And the purchases on our side--yes, the European market is open. That's 450 million people. It's a good deal, a huge deal. It was a tough negotiation. I knew it at the beginning--it was very tough. But we came to good conclusions for both sides," she added.
The negotiations followed Trump's earlier announcement this month of a 30 per cent tariff on goods from the European Union, effective August 1.
He announced in a letter to the European Commission President posted on Truth Social about the tariff decision, citing trade imbalances as key reasons.
Trump, prior to the announcement, stated that the trade relations between the US and the EU were "very one-sided" and "very unfair" to Washington.