The United States has struck a framework trade deal with Europe, U.S. President Donald Trump announced on Sunday, averting a spiralling row between two allies who account for almost a third of global trade.
The deal, that includes a 15 per cent tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment, will bring welcome clarity for EU companies.
However, the baseline tariff of 15 per cent will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30 per cent rate.
The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with U.S. President Donald Trump to push a hard-fought deal over the line.
Trump, who is seeking to reorder the global economy and reduce decades-old U.S. trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of “90 deals in 90 days.”
Trump has periodically railed against the European Union saying it was “formed to screw the United States” on trade.
His main bugbear is the U.S. merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to U.S. Census Bureau data.
The EU points to the U.S. surplus in services, which it says partially redresses the balance.
In a statement, Taoiseach Micheál Martin said: “The agreement achieved this afternoon in Scotland between Presidents von der Leyen and Trump is very welcome.
“”It brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world.
“That is good for businesses, investors and consumers. It will help protect many jobs in Ireland.
“The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work.
“We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.
“The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.
“It does mean that there will now be higher tariffs than there have been and this will have an impact on trade between the EU and the US, making it more expensive and more challenging.
“However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy.
“Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many.”