July 28, 2025
I think it’s going to be great for both parties.
President Donald Trump, after reaching a trade agreement with the European Union on Sunday. The deal applies a baseline 15% tariff on most EU goods, such as cars and pharmaceuticals, with 0% tariffs on other goods, such as aircraft equipment. Steel and aluminum tariffs remain at 50%, with further negotiations expected.
Why It Matters: President Trump met with European Commission President Ursula von der Leyen in Scotland, where the two leaders reached an agreement that helped avoid a trade war between two of the world’s largest economies – the EU and U.S. are responsible for about one-third of global trade. “Today’s deal creates certainty in uncertain times,” von der Leyen said after the meeting. France criticized the deal, with Prime Minister François Bayrou saying, “It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission.”
Big picture: Global trade will likely not slow down, but Americans could see higher prices on goods coming from Europe. President Trump continues to negotiate tariff policies with other countries, including a recent announcement that Japan and the U.S. will set a 15% baseline tariff.
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by Emily Hooker, based in Texas
