EU Agrees 15% Tariff Deal with US, $1.35T Energy Investment

President Trump and European Commission President Ursula von der Leyen announced a contentious trade deal between the United States and the European Union, featuring a 15% tariff on most EU exports to the U.S., which is half of the original 30% threat. The EU agreed to invest $600 billion in the U.S., including defense manufacturing, and to purchase $750 billion in American energy over three years, underscoring Europe's growing dependency on U.S. energy and military support. While von der Leyen called the deal "the best we could get," several EU members, notably France, criticized it as humiliating and unbalanced, reflecting the EU's weakened geopolitical position and economic dependence. The EU’s commitment to buying more expensive U.S. energy and arms may undermine its autonomy and economic strength, increasing the risk of recession and further ceding sovereignty to the U.S. The deal, paralleling the recent U.S.-Japan agreement, aims to stabilize trade relations but has drawn concerns about Europe's diminished leverage and the broader implications for transatlantic economic power dynamics.