Donald Trump announces a colossal deal with Europe: $750 billion for energy, $600 billion for investments, and hundreds of billions in US-made weaponry.
Trump’s Show of Power
A showdown. A $1.6 trillion deal. And a weakened Europe. From his Turnberry resort in Scotland, Donald Trump dramatically announced a commercial agreement with Ursula von der Leyen. Officially, it’s a deal to “avoid a transatlantic trade war”. In reality, it’s a show of American strength, backed by billions, tariff threats, and massive European concessions.
A Rain of Billions for the US Economy
Trump gets almost everything he wanted. Europe commits to buying $750 billion of American energy, investing $600 billion directly in the US, and acquiring “for hundreds of billions” of US-made weapons. Von der Leyen confirms an annual $250 billion energy purchase for three years.
“This is probably the biggest deal ever made, in trade or beyond.”
Trump
In return, Washington limits its new tariffs to 15% on European exports, a ceiling that remains painful for several pillars of the Old Continent’s industry: automotive, pharmaceutical, and semiconductors. The tariff on European cars drops from 27.5% to 15%, but German manufacturers had hoped for more.
A Political Victory, but a Painful Compromise
This deal was imposed by Trump. He had threatened to impose 30% tariffs as of August 1st. Brussels, faced with sluggish growth and rising tensions with China, folded to salvage what it could.
“We ensure access to our top export market,” von der Leyen tried to reassure.
But the pill is bitter. Wolfgang Niedermark of the BDI (German industry federation) calls it a “painful compromise” and warns that the single 15% tariff could severely hit the German export industry. Even in France, there are concerns. Benjamin Haddad, Minister of European Affairs, applauds “temporary stability,” but criticizes an “unbalanced” agreement.
Divided Europe, Applauding Markets
While some European leaders, like Italian Prime Minister Giorgia Meloni, appreciate a welcomed de-escalation, the consensus is fragile. The deal doesn’t soothe all tensions: European steel and aluminum remain taxed at 50%, and other sectors like aerospace are still under investigation in the US.
But the markets love it. The Stoxx Europe 600 rises by 1%, buoyed by general relief. Bitcoin soars above $119,000, as the agreement quells fears of a major trade war. Ethereum benefits as ETH gains 3.5% to $3,900, capitalizing on a solid onchain momentum (28% of staked ETH, exchange reserves at an 8-year low).
A Lesson for Europe… and the Rest of the World
The European Union averted the worst. But at what cost? Trump demonstrates he can enforce his rules without WTO involvement, by playing countries against each other. Europe agrees to pay for trade peace while bolstering American industrial and energy power.
And this is just the beginning. Other partners, like China, are watching closely. The rules of global trade in 2025 are no longer negotiated in Geneva but on the green of a Scottish golf course.
