The deal, which includes a 15% tariff on EU goods entering the US and significant EU purchases of US energy and military equipment, will bring welcome clarity for EU companies.

However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate.

The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with US President Donald Trump to push a hard-fought deal over the line.

Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of “90 deals in 90 days.”

Trump has periodically railed against the European Union, saying it was “formed to screw the United States” on trade.

His main bugbear is the US merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to US Census Bureau data.

The EU points to the US surplus in services, which it says partially redresses the balance.