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Following President Donald Trump’s open letter to the EU proposing trade tariffs, an agreement between the US and EU has been reached during the US President’s recent trip to Scotland.

The deal imposes a flat 15% tariff on the vast majority of EU goods entering the US. While the agreement still needs formal ratification by all 27 EU member states, it provides some clarity to European businesses after weeks of uncertainty that had rattled global markets.

The tariff applies across major sectors, including automotive and pharmaceuticals, but the 15% rate is lower than the 30% Trump had threatened in his open letter earlier in July.

“This 15% is a clear ceiling. No stacking. All-inclusive. So it gives much-needed clarity for our citizens and businesses,” EU President Ursula von der Leyen said in a statement, emphasising how crucial it was to reach a deal with the US.

The EU initially proposed a retaliatory tariff package on $109 billion (€90 billion euros) of US goods, including bourbon, following the letter posted on Trump’s social media platform, Truth Social – which gave a deadline of this week for an agreement.

Zero tariffs on ‘strategic’ products – including some agricultural goods

Of note to the food and drink industry, the deal includes a 'zero-for-zero' provision on a list of as-yet-unspecified 'strategic' products. Von der Leyen suggests this could include certain agricultural goods, natural resources and possibly some processed food categories. The full list is expected to be published in the coming weeks.

Speaking from his Turnberry golf resort, Trump said the EU would “open up their countries at zero tariff” to US exports in exchange for the 15% rate and promised investment.

Implications for EU food and drink businesses

Although the agreement has helped avoid an outright trade war, European food and beverage producers – particularly exporters of wine, spirits, dairy and speciality foods – may still face significant challenges under the new deal.

Before Trump’s announcement, many EU food categories faced minimal or no tariffs. A sudden 15% increase could disrupt pricing, squeeze margins and put pressure on transatlantic supply chains.

French Prime Minister François Bayrou voiced strong opposition, calling it a “dark day” for Europe. “It is a dark day when an alliance of free peoples… resigns itself to submission,” he told the BBC.

By contrast, German Chancellor Friedrich Merz welcomed the deal, noting that it avoids “an unnecessary escalation in transatlantic trade relations” and provides a reprieve for Germany’s export-heavy economy.

With formal ratification still required and details of product-specific tariffs yet to be clarified, the deal offers stability, but not necessarily relief for many producers across the EU.

Von der Leyen closed with a note of cautious optimism: “This deal provides a framework from which we will further reduce tariffs on more products, address non-tariff barriers and cooperate on economic security. Because when the EU and US work together as partners, the benefits are tangible on both sides.”