Sunday

07-27-2025 Vol 2034

EU and U.S. Reach Major Trade Agreement at Trump’s Turnberry Resort

TURNBERRY — In a notably ironic turn of events, the top officials from the European Union traveled to Britain to finalize the bloc’s largest agreement since Brexit, a demand that President Donald Trump had sought to satisfy.

European Commission President Ursula von der Leyen marked a significant personal achievement in this high-stakes meeting, having faced backlash early in her second term in office and recently navigating a setback from the EU court.

The backdrop for this pivotal conversation was Trump’s Turnberry golf resort in Scotland, where he was enjoying a tranquil summer getaway from international affairs.

Despite having to wait for Trump to finish his day of golfing and engaging in colorful critiques of wind energy, von der Leyen managed to seal the agreement after a crucial hour-long discussion.

Upon entering their meeting at 5:40 p.m. U.K. time, both leaders were skeptical, estimating their chances of success at a mere 50%.

However, as discussions progressed, any concerns about potential last-minute roadblocks began to evaporate.

Trump, known for his grand descriptions, immediately characterized the deal as “the biggest one of them all” after similar agreements had been signed with the U.K. and Japan in recent months.

The agreement establishes a 15% tariff on most EU imports into the U.S., successfully preventing Trump’s threat to raise those tariffs as high as 30% on EU goods by August 1.

Experts anticipate that the deal will breathe new life into the European economy, which has been recovering from the impacts of the Covid pandemic and lagging behind many global counterparts.

“It was heavy lifting we had to do,” von der Leyen said as she hurried to return to Brussels.

“But now we made it.”

Following a protracted two-week standoff initiated by Trump, who warned von der Leyen in a letter that he would heighten tariffs if a deal wasn’t struck by the end of the month, negotiations intensified considerably.

While the golf course provided a picturesque setting, Trump couldn’t resist noting his disdain for windmills, stating, “Even though I own it, it’s probably the best course in the world,” while simultaneously lamenting the sight of windmills on the horizon.

He further indicated that the EU would commit to purchasing $750 billion worth of energy from the U.S.

In addition, Trump projected that the EU would invest $600 billion more than initially planned into the U.S. economy.

The agreed tariff rate will also apply equally across various sectors, including automobiles, pharmaceuticals, and semiconductors, while the specifics for alcoholic beverages are still under discussion.

According to von der Leyen, Europe is set to replace Russian gas imports with U.S. energy purchases, estimating $250 billion per year for the duration of Trump’s presidency.

Furthermore, Trump confirmed that steel and aluminum imports from the EU would remain subjected to a hefty 50% tariff, though von der Leyen assured that Washington and Brussels would collaborate on measures to address global overcapacity.

These negotiations were preceded by a strategic display of strength from Trump, who sent ripples through EU trade negotiators by suggesting that a preliminary agreement was near, only to ramp up pressure with the tariff threats.

This tactic led to heightened tensions, with the EU activating its trade countermeasures against the U.S., targeting around €93 billion in American goods, including aircraft, autos, soybeans, and bourbon, with retaliatory tariffs that could reach as high as 30%.

During the meeting, von der Leyen emphasized the immense significance of the $1.7 trillion transatlantic trade relationship, advocating for strong cooperation.

Her appeal to Trump focused on the necessity of achieving a beneficial deal, highlighting the importance of trade flows between the two economic giants.

“It means good jobs on both sides of the Atlantic, and that was important for us,” she remarked following the conclusion of the meeting.

Despite his initial concerns about maintaining a ‘bad mood’, Trump expressed contentment with the finalized agreement, stating it would foster increased unity and friendship between both parties.

“This is going to work out really well,” he said.

Von der Leyen was accompanied in Turnberry by several high-ranking officials, including Trade Commissioner Maroš Šefčovič and her chief of staff, Bjoern Seibert.

On the American side, Commerce Secretary Howard Lutnick represented the U.S. in these important bilateral trade talks, which marked the first major discussions since the imposition of widespread tariffs by Trump in April.

Lutnick later mentioned that a decision regarding a semiconductor industry investigation, which could potentially lead to new tariffs, was anticipated within two weeks.

Finalizing a deal with the EU has proven considerably more challenging for Trump’s administration compared to agreements achieved with Japan and other nations.

This difficulty underlines the EU’s considerable strength as an economic superpower, with its 450 million consumers complicating Trump’s direct negotiating approach.

Moreover, the EU’s trade policy involves comprehensive consultation and negotiation among its 27 member states, contrasting starkly with Trump’s more unilateral style of deal-making.

While there was no immediate release of a joint statement or official text outlining the deal’s specifics, insiders from the EU negotiating team stressed that securing a written agreement quickly is essential.

The Commission plans to brief EU ambassadors regarding the trade deal in Brussels on Monday morning.

Even amid the celebratory atmosphere, Trump continued to voice his discontent about windmills, asserting, “They’re killing us.

They’re killing the beauty of our scenery, our valleys … And when they start to rust and rot in eight years, you can’t really turn them off. You can’t bury them.”

Additional reporting was contributed by Daniel Desrochers, Doug Palmer, Jordyn Dahl, and Gabriel Gavin.

image source from:politico

Abigail Harper