Jonathan Josephs
Business reporter

A White House source has confirmed to the BBC that pharmaceuticals, semiconductors and cars are included in the EU-US trade deal and will all face a tariff of 15%.

This is in line with what European Commission President Ursula von der Leyen said on Sunday.

The clarification comes after President Trump has suggested pharmaceuticals, which are the biggest EU export to the US, wouldn't be included.

This means EU-made cars, which are the third largest category of export to the US, will face lower tariffs than the 25% global tariff that was brought in at the start of April.

As well as making "massive" energy purchases the EU has agreed to reduce other non-tariff barriers "across the board on a range of goods" and this includes accepting US auto standards so that American cars can be sold directly into the EU.

The source says there will also be reforms to EU agricultural regulations that mean more US farm produce can be sold in the EU, but the nature of those reforms was not spelled out.

EU steel and aluminium will continue to face a 50% tariff when sold into the US.

Image source, Reuters

US Vice-President JD Vance backed the new trade deal in an X post late on Sunday:

"The entire European press is singing the president’s praises right now, amazed at the deal he negotiated on behalf of Americans," Vance wrote.

"Tomorrow the American media will undoubtedly run headlines like 'Donald Trump Only Got 99.9 Percent of What He Asked For.'"

We'll have more analysis on the deal later - including winners and losers.

The US and EU can both claim trade victorypublished at 08:19 British Summer Time 28 July

08:19 BST 28 July

Jonathan Josephs
Business reporter

Both President Trump and European Commission President Ursula von der Leyen can paint this trade deal as something of a victory.

For the EU, the tariffs could have been worse at 15%, rather than the 30% that had been threatened - although its not as good as the UK's 10% rate.

For the US that equates to the expectation of roughly $90bn of tariff money coming into government coffers, based on last year's trade figures. Plus, there's $600bn of investment now due to come into the country.

Imogen James
Live reporter

Image source, EPA

US President Donald Trump welcomes his second official visitor on his five-day trip to Scotland today, as UK Prime Minister Sir Keir Starmer heads to Turnberry.

The pair will meet at the Trump-owned Ayrshire golf resort this morning, before travelling together to Aberdeenshire to visit the president's other Scottish golf course.

The meeting comes a day after Trump announced an EU trade deal with European Commission president Ursula von der Leyen.

The result was US tariffs on most European goods of 15% - we'll have more details and analysis in this page.

We expect Trump and Starmer to discuss trade today - the UK agreed a deal with the US earlier this year that puts 10% tariff on most UK goods entering the US.

The BBC also understands the topic of Gaza will arise, as the US faces pressure to intervene while concerns grow about starvation in Gaza.

Starmer is due to arrive in Scotland later this morning. Until then, we'll have all the news and reaction in this page.

Thomas Mackintosh
Live reporter

Image source, Getty Images

A trade deal has been reached between the European Union and the US after high-stakes negotiations at Donald Trump's luxury golf resort in Scotland.

The agreement will see a blanket US tariff of 15% on all EU goods. Details of the deal are still being pored over but, as part of it, Trump also said the EU had promised hundreds of billions of dollars worth of investment and energy purchases.

The US leader described the agreement as the "largest ever made"; while Ursula von der Leyen hailed the deal, saying it would bring stability and predictability for both sides.

In the hours that followed the announcement, European leaders cautiously welcomed the trade deal with German Chancellor Friedrich Merz saying the agreement managed to preserve the EU's fundamental interests.

Italian Prime Minister Giorgia Meloni views the deal as positive but stresses she would need to see the details before passing proper judgement. Irish Prime Minister Micheal Martin says it will help bring stability, but he acknowledges that trade will be more expensive than before.

We are pausing our live coverage but we will have more tomorrow as Trump is scheduled to meet UK Prime Minister Keir Starmer.

Chris Page
Ireland correspondent

The Irish Prime Minister, the Taoiseach Micheál Martin, says the news of the EU-US trade deal is “very welcome".

Among EU countries, Ireland is the most reliant on the US as an export market.

Martin says the fact that tariffs would still be higher than before would make trade “more expensive and more challenging”.

However, he adds the agreement will bring “a new era of stability” and will “help protect many jobs in Ireland”.

In 2024, Ireland exported goods worth £60.4bn ($81.1bn) to the US.

Jonathan Josephs
Business reporter

“You think of European Union, very friendly. They rip us off. It's so sad to see”.

Those were President Trump’s words on 2 April when he laid out his plans to impose widespread tariffs on America’s trading partners which he claimed were “reciprocal”.

For years, the US president has rallied against what he regards as Europe’s unfair trade practices.

The first part of that is the deficit. Last year that meant the US bought $235.9bn of goods more from the EU than it sold to it. Trump takes the somewhat simplified view that is American wealth needlessly leaving the country. The reality is that international trade is a more complex affair.

The other complaint has been that the EU’s strict regulations on everything from cars to chickens make it harder for American companies to sell their products in the EU than the other way round.

When we get more details of this deal, we may know how much has been done to address that.

But European Commission President Ursula von der Leyen seemed to acknowledge the need to tackle the deficit.

In an announcing the deal she said “we have to rebalance it. We have an excellent trade relation. It's a huge volume of trade that we have together. So we will make it more sustainable.”

Image source, PA Media

It’s not just the EU Donald Trump has restructured business relations with over the past few months following the so-called Liberation Day when the president announced reciprocal tariffs on the “worst offenders”.

Here’s a look at the deals that have been signed since then:

• United Kingdom - The US and UK agreed to a trade deal back in early May, which included a baseline 10% tariff on most goods exported to the US, with certain exemptions
• Vietnam - The US and Vietnam announced a deal on 2 July, which set a 20% tariff on Vietnam-produced goods, and a 40% tariff on goods produced elsewhere but transported through Vietnam to the US
• Indonesia - The US and Indonesia negotiated a trade deal earlier in July, where Jakarta will drop almost all tariffs on US goods, while Indonesian goods entering the US will be subject to a 19% tariff
• Japan - Japan is one of the US's top trading partners, and its goods will be subject to a 15% tariff when imported into the US under a recent trade agreement
• The Philippines - Just last week, Manila and Washington struck a deal what would see 19% tariff on imports from the Philippines. US exporters to the southeast Asian country will not be subject to tariffs

Bethany Bell
Foreign correspondent

Germany’s Chancellor Friedrich Merz has posted his reaction to the deal on social media.

Writing on X, Merz says: "The agreement reached in the EU-US negotiations on tariffs has succeeded in averting a trade conflict that would have hit Germany's export-oriented economy hard.

"The unity of the European Union and the hard work of the negotiators have paid off. We have been able to protect our core interests.

"Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike."

Image source, Reuters

More from Ursula von der Leyen who also says the European Union will increase cooperation with the United States by buying American energy products.

"We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels," the European Commission President says in a statement.

"Today's deal creates certainty in uncertain times. It delivers stability and predictability, for citizens and businesses on both sides of the Atlantic.

"This is a deal between the two largest economies in the world."

The devil will be in the detailpublished at 20:33 British Summer Time 27 July

20:33 BST 27 July

Arunoday Mukharji
North America correspondent

This deal is being sold as a landmark moment in relations between the US and the EU. This was one negotiation the two would not have wished to see go beyond the 1 August deadline. And it has not been easy getting to this point.

Washington and the 27-nation bloc have both played hardball and neither was ready to give in easily which is why talks went down to the wire.

A lot of big numbers have been thrown around in terms of how much the EU will invest in the US, but the devil will be in the detail. Questions like exactly when those investments will be made, and in what areas, are for now, unanswered.

The business impact of the agreement will be judged in the weeks and months ahead and as the new agreement takes shape but for now, both sides are championing this as a win.

European Commission President Ursula von der Leyen has just been speaking to reporters about the trade deal.

"On the first of August, we would have been at 30%, and it would have been much more difficult to get down to 15%," she says.

The 15% tariff will be a "challenge", the EU chief says, but the deal "gives us access to the American markets".

Jonathan Josephs
Business reporter

This deal shows how serious President Trump is about renegotiating how the US, the world’s biggest economy, does business with everyone else.

Given the EU consists of 27 very different countries it has seemed one of the trickier trade deals to pull off but its happened just before the 1 August deadline.

It comes days after another major agreement was struck with Japan - there have also been deals with the UK, Vietnam and Indonesia.

The other big ones still on the table are with the three biggest US trade partners - Mexico, Canada and China.

But if the US president is in a deal making mood, then there could be more positive news for the global economy over the next 48 hours in terms of uncertainty being settled.

The US and China are holding their next trade talks in Stockholm tomorrow and Tuesday and there is some expectation that higher tariffs could be suspended for another 90 days.

A few days ago Trump said the US was “getting along with China very well” and implied that the major sticking point of rare earth metals exports had been overcome.

Donald Trump and Ursula von der Leyen spoke to reporters to announce the deal, with the US president saying he thinks its "the biggest deal ever made".

Image source, Getty Images

Italian Prime Minister Giorgia Meloni says it's positive that the EU has reached a deal with the US, but needs to see the details, Italy's Ansa news agency reports.

Italy is the EU's third largest economy.

Image source, Reuters

We can bring you some more details now about what we know about the trade deal. Trump said the EU will purchase $750bn (£558bn, €638bn) in US energy, in additional to increasing overall investment in the US by $600bn (£446bn, €510bn).

The US president hailed the agreement as the "biggest deal ever made" and adds that Washington is eyeing up agreements with "three to four other countries".

Jonathan Josephs
Business reporter

After weeks of tense negotiations between their top trade officials, the EU and US have finally struck a deal.

Ultimately it has taken their leaders to sit down face to face to get an agreement.

That’s something we’ve also seen with the other deals that President Trump has struck, his personal involvement is what has got them over the line – even when it looked like a deal might not happen.

That it has matters to both sides because so many businesses and jobs depend on what the EU calls “the world's largest bilateral trade and investment relationship”.

Both President Trump and European Commission President Ursula von der Leyen can paint this as something of a victory.

For the EU, the tariffs could have been worse at 15%, rather than the 30% that had been threatened – although it’s not as good as the UK’s 10% rate.

For the US that equates to the expectation of roughly $90bn of tariff money coming into government coffers – based on last year’s trade figures, plus there’s $600bn of investment now due to come into the country.

In remarks to reporters, Trump said the deal will be "great for cars", and will have a big impact on agriculture.

He added that he is "looking at three or four other countries" to strike deals with as well, but that they will most likely include some form of tariffs.

The President of the European Commission, Ursula von der Leyen, confirmed there would be US tariffs on goods from Europe of 15% across the board.

Washington had earlier threatened a tariff rate of 30%.

The agreement also includes promises of billions of dollars worth of investment and energy purchases from Brussels.

Image source, Reuters

President Trump announced the deal when speaking to reporters at his golf resort in Turnberry, Scotland, just after he came out of a brief meeting with Ursula von der Leyen.

"We have reached a deal. It's a good deal for everybody," Trump said.

"It's going to bring us closer together... it's a partnership in a sense," he added.

EU chief Ursula von der Leyen also hailed it as a "huge deal", which came after "tough negotiations".