President Donald Trump said that the United States reached a trade deal with the European Union.
He told reporters it will include a 15% tariff on most imports, including automobiles. The deal comes after months of trade talks between the two bodies.
The deal is in line with recent trade deals the Trump administration has struck with other countries. Before this announcement, the EU was set to be subject to 30% tariffs by Trump’s August 1 trade deal deadline.
Trump also said that the EU agreed to purchase $750 billion of American energy and would increase its investment in the U.S. by more than $600 billion above its current levels. A timeline for these investments was not announced.
The trade deal still represents a large increase in tariffs for the U.S.-EU relationship.
The 15% automobile tariff on European cars will be lower than the 25% overall tariff on automobiles that Trump announced in April.
Trump additionally suggested that pharmaceuticals from the EU will be in a separate deal. The EU was hoping to cap the tariff rate on pharmaceuticals, which is the continent’s largest export to the U.S.
“Pharmaceuticals are very special,” Trump said to reporters before the meeting.
Ursula von der Leyen, the president of the European Union, said that this deal will “rebalance” the American and European trading relationship. The two leaders met while Trump was on a trip to Scotland.
During his presidency, Trump has frequently delayed his tariff deadlines and changed the proposed rates.
These tariffs on the EU were announced April 2 as a part of Trump’s “Liberation Day” tariffs, but were paused for 90 days less than a week later and capped at 10% for the most part. The tariffs were set to go into effect July 9, but that was extended to August 1.
Commerce Secretary Howard Lutnick said Sunday that there will be “No extensions. No more grace periods. Aug. 1, the tariffs are set. They’ll go into place.”
Trump previously said the new Aug. 1 deadline is “firm but not 100% firm.”
NINETY DEALS IN 90 DAYS: TRUMP’S TARIFF PAUSE CLOUDS ‘LIBERATION DAY’ ECONOMIC FORECAST
The Trump administration said they would make “90 deals in 90 days,” but have announced just around a dozen since. These include deals with the United Kingdom, Vietnam, Japan and Indonesia. Trump recently signaled trade agreements are coming soon with Cambodia and Thailand.
The Trump administration has not yet struck a deal with China, which at one point in Trump’s trade war was subject to the highest tariff rate at 145%. The Trump administration has also not yet struck a deal with Canada, one of the U.S.’s largest trading partners.
This is a breaking news story and has been updated.