U.S. and EU Reach Major Trade Deal as Trump Sets 15% Tariff on Imports, Greece Among Most Exposed Economies

The United States and the European Union reached a significant trade agreement on Sunday, establishing a new framework that will see a 15% import tariff imposed by the U.S. on most European goods. Despite this breakthrough, existing tariffs on U.S. imports of European steel and aluminium will remain at 50%.

The deal emerged following a one-hour meeting between U.S. President Donald Trump and European Commission President Ursula von der Leyen, held at Trump’s golf course in western Scotland. Alongside the tariff agreement, Trump announced that the European Union had agreed to purchase USD 750 billion worth of U.S. energy and to invest USD 600 billion more than previously planned into the American economy.

The deal arrives just days ahead of a looming deadline for additional tariff action. President Trump had threatened to impose a 30% tariff on all EU imports starting August 1, had the two sides failed to reach a compromise.

“I think this is the biggest deal ever made,” Trump said during a press conference to announce the agreement. “We have a trade deal between the two largest economies in the world, and it’s a big deal. It’s a huge deal. It will bring stability. It will bring predictability.”

President von der Leyen echoed that sentiment, calling the agreement a step toward stability and predictability in transatlantic trade. Later, speaking at a separate news conference, she clarified that the 15% tariff would act as a ceiling rate and would apply uniformly to categories such as automobiles, pharmaceuticals, and semiconductors. She added that the tariff arrangements for alcoholic beverages are still under discussion and yet to be finalized.

Another key provision of the agreement involves a commitment by the EU to phase out its reliance on Russian gas. Europe will replace it with U.S. energy supplies valued at USD 250 billion annually for the remainder of President Trump’s term in office.

However, reactions to the deal across Europe are expected to be mixed. According to Reuters, the 15% tariff level may be seen as a disappointing outcome compared to earlier European hopes for a zero-for-zero tariff agreement. Still, it is viewed as preferable to the more damaging 30% rate that was on the table only days prior.

Meanwhile, new analysis has surfaced regarding the impact of U.S. import tariffs on emerging European economies. A report issued by UBS on July 15 highlights Greece as particularly vulnerable. Among emerging markets in the EMEA region—Europe, the Middle East, and Africa—Greece ranks fourth most exposed to the potential consequences of the initially proposed 30% tariff.

UBS pointed to Greece’s concentrated export portfolio and the generally small size of its export-oriented firms as key risk factors. These characteristics limit the country’s capacity to quickly pivot in response to new trade dynamics or logistical challenges.

According to the report, Greece’s ability to manage the impact of the U.S. tariffs will depend heavily on several factors: how effectively the EU can negotiate product-specific exemptions, the speed at which Greek companies can diversify their export destinations, and whether domestic businesses can increase the value-added components of their goods to reduce tariff exposure or qualify for strategic status.

The report noted that while the deal delays the most severe tariff measures, the broader consequences of these trade changes could be felt most significantly in 2026.

By fLEXI tEAM