- The EU will invest $600 billion into the U.S. and buy $750 billion in U.S. energy goods.
- To prevent a global trade war, the U.S. set a 15% cap on the majority of EU tariffs.
- Following the deal, investors’ optimism spiked the price of USD to 98.737 since May.
The United States and the European Union reached a landmark trade agreement on Sunday, capping import tariffs at 15% and avoiding a severe trade war. The deal was confirmed after a crucial one-hour meeting between U.S. President Donald Trump and European Commission President Ursula von der Leyen at Trump’s golf resort in western Scotland.
According to sources, the agreement will apply a 15% import duty on most EU goods, half of the earlier 30% threat, and comes after months of tense negotiations. Trump announced the accord as the “biggest deal ever made,” citing extensive investment and export commitments from Europe.
Von der Leyen called Trump a “tough negotiator” and described the deal as the best outcome under current conditions. Both leaders said the framework will increase economic ties, bring predictability, and support shared interests in trade, energy, and manufacturing.
EU to Invest $600B by 2028, Purchase $750B in Energy
The European Union committed to investing approximately $600 billion in the U.S. by 2028. According to White House data, this capital will be contributed by major corporations such as Volkswagen and AstraZeneca.
The EU also pledged to buy $750 billion worth of American energy products, significantly increasing imports of oil, liquefied natural gas, and nuclear technology. This energy deal is aimed at helping Europe reduce its reliance on Russian sources.
Trump compared the agreement to a recent $550 billion trade deal with Japan and described this new one as surpassing all previous deals. The White House stated in an official fact sheet that the deal would enhance American exports and create a fairer trade environment.
The EU will further open its markets by removing tariffs on U.S. goods and services, including industrial, agricultural, and digital products. According to the White House, many of these exports will now face zero tariffs.
Tariff Cap and Key Sectors in the Framework
In exchange for Europe’s commitments, the U.S. approved limiting its import tariffs on EU goods to 15%. The cap helps de-escalate growing tensions between the two allies, which together account for nearly one-third of global trade.
Certain sectors like steel and aluminum will still face tariffs up to 50%. However, aircraft components, chemicals, generics, semiconductors, agricultural goods, and critical raw materials are being considered for “zero-for-zero” tariff arrangements.
Von der Leyen emphasized that although the deal required compromises, it would stabilize trade relations and support global economic confidence. The White House confirmed that the agreement would help reduce the U.S. trade deficit while enabling U.S. farmers, ranchers, and manufacturers to expand exports and access new markets.
Related: Are US Dollar Stablecoins Undermining Europe’s Monetary Sovereignty?
USD Index Rallies After Trade News
The aftermath of the announcement led the U.S. Dollar Index from 97.577 to 98.737, marking the largest rally since May 12, 2025. The hourly TradingView chart revealed an upward move forming a rising wedge, with price respecting the 97.577 support zone and going through 98.100 to reach 98.750.
Source: TradingView
The rally aligned with investor sentiment after news that American products would enjoy 0% tariffs in EU markets, thereby improving their export opportunities. The dollar not only connotes the level of buoyancy in the economy but also implies the level of risk-on preference in the European markets in tandem with the decreased trade barriers in the deal.
