EUR News
LAST UPDATE: July 28, 2025
EU Reaches Tariff Deal With US to Avert Painful Trade Blow
The U.S. and EU agreed to implement a 15% baseline tariff on most EU exports—including autos—to avoid a threatened 30% increase effective August 1, 2025. Exemptions apply to aircraft parts, some pharmaceuticals, and select agri goods. The deal also includes $750 billion in U.S. energy purchases and $600 billion in European investments. (Reuters, Bloomberg.com)
Insight
This compromise mitigates severe tariff shocks while offering long-term commitments on energy and investment, though sectoral exclusions and high steel tariffs reflect lingering friction.
FACTBOX‑Key elements of EU‑U.S. trade deal agreed on Sunday
The agreement sets a 15% tariff on most EU exports; retains 50% tariffs on steel and aluminum (to be replaced later with quotas); grants zero tariffs on aircraft, semiconductors, generics, and select agri goods; includes EUR $750 billion in energy purchases and $600 billion in investments. (Reuters)
Insight
The deal clarifies where EU industries won concessions (e.g. aerospace, pharma) but leaves high‑impact sectors like steel exposed, maintaining structural imbalances in favor of U.S. demands.
QUOTES‑European leaders react to US‑EU trade deal
German Chancellor Friedrich Merz praised the deal for averting economic harm, while other European leaders expressed concern the deal favored U.S. interests and did not fully deliver on EU expectations. (Reuters, Reuters)
Insight
The mixed reactions reflect intra‑EU tension between pragmatism and compromise. Still-divided leadership may test unity during ratification.
Starmer to Meet Trump to Discuss Trade Deal and Gaza Ceasefire
UK Prime Minister Keir Starmer will meet President Trump at his Scotland resort to discuss advancing a UK–U.S. trade agreement and push for a renewed ceasefire in Gaza. (Reuters, The Independent)
Insight
Starmer is using the meeting to advance dual agendas: deepen post‑Brexit U.S. trade ties while appealing for humanitarian relief in Gaza, positioning the UK as a mediator despite alignment with U.S. policy.
UK’s Starmer to convene cabinet meeting, most likely to discuss Gaza
Starmer will reconvene his cabinet early next week—despite summer recess—to address escalating Gaza crisis and growing pressure within his party to recognize Palestinian statehood. (Reuters, AL-Monitor)
Insight
The emergency meeting reflects rising internal and external demands on Starmer to shift UK foreign policy—his delicate balancing act underscores tensions between domestic party pressures and diplomatic caution.
Romanian deputy PM resigns after bribery case resurfaces
Deputy Prime Minister Dragos Anastasiu resigned after revelations that an old corruption scandal, in which his firm was extorted disguised as consultancy fees from 2009–2017, had resurfaced. He claimed the payments were survival tactics and not illegal. (Reuters, Global Banking | Finance)
Insight
The resignation weakens the nascent reform coalition government and underscores the political risks of corruption scandals amid efforts to cut spending and rationalize state firms.
