TRANSCRIPT: President Trump Announces a Trade Deal with the European Union - 7.27.25
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President Trump: Thank you very much. So we have good news. Uh, we've reached a deal. It's a, uh, good deal for everybody, I believe. And, uh, it's -- I think you were saying this is probably the biggest deal ever reached in any capacity trade or beyond trade.
Ursula von der Leyen: It is.
Trump: Let's say, uh, it's a giant deal with lots of countries because as you know, Ursula represents a lot of countries, not one country. It's a, it's not easy for you. It's 'cause a lot of very different countries, great countries, but some are strong with cars, some are strong with agriculture, some are strong with both, right? You have a lot of different, uh, factors. So we're going to do the following. Uh, the European Union is going to agree to purchase from the United States, $750 billion worth of energy. $750 billion worth of energy. They are going to agree to invest into the United States, $600 billion more than they're investing already. So they're investing a large amount of money. Uh, you know what that amount of money is? It's very substantial, but they're gonna invest an additional $600 billion. Uh, they're agreeing to open up their countries to trade at zero tariff. So that's a very big factor. Opening up their countries. All of the countries will be opened up to trade with the United States at zero tariff. Uh, and they're agreeing to purchase a vast amount of military equipment. We don't know what that number is, but it's, it's, the good news is we make the best military equipment in the world. So sort of, you have to do that. I mean, until somebody tops us, which is not gonna happen. We're way ahead of every other country in terms of the quality of the military equipment. You saw that recently in, uh, Iran, and you see that -- Unfortunately, you see that often for all the wrong reasons, right? So those things are, uh, 750 billion, 600 billion, opening up the country. Uh, we are agreeing that the tariff straight across for automobiles and everything else will be a straight across tariff of 15%. So we have a tariff of 15%. We have the opening up of all of the European countries, which I think I could say were essentially closed. I mean, they, you weren't exactly taking our autos. You weren't exactly taking our agriculture and then you would have smaller things, but for the most part it was closed and now it's open. It's open for our companies to go in and do a good job with it. I think you'll like them. I think you'll like it. And, uh, we will, uh, very importantly, they'll be investing a lot of money. But the military is a big number, but that's one number we're not determining. It's gonna be whatever it is, but they're gonna be purchasing, uh, hundreds of billions of dollars worth of military equipment. Uh, they're, uh, very importantly, they're gonna purchase 750, uh, $750 billion worth of energy. So that's gonna be great.And $600 billion worth of investments into the United States over and above what they have. So, and I think that basically concludes the deal. I mean, those are the main factors. I don't think there are too many other factors other than we're gonna get along great. And we have a great relationship now with NATO, which is largely the same. You know, I mean, not exactly, but pretty -- pretty close, right, largely? And with NATO, as you know, they're going up to 5% from 3, from 2%. And the relationship is very strong with NATO. Uh, so I just want to congratulate you. I think it's, uh, I think it's great that we made a deal today instead of playing games and maybe not making a deal at all. I think it's, uh, I, I'm gonna let you say, uh, but I think it's the biggest deal ever made. Thank you very much.
Von der Leyen: Thank you very much.
Trump: Congratulations.
Von der Leyen: Thank you.
Trump: Go.
Von der Leyen: Yeah, thank you. We have a deal. Uh, we have a trade deal between the two largest economies in the world. And it's a big deal. It's a huge deal. Um, it will bring stability, it will bring predictability. That's very important for our businesses on both sides of the Atlantic. Um, it's 15% tariffs across the board, all-inclusi- -- inclusive, the investments Mr. President just described that gonna go to the United States and the purchases over there. Indeed, uh, basically the European market is open. It's 450 million people. Um, so it's a good deal. It's a huge deal --
Trump: Yeah.
Von der Leyen: -- was tough negotiations.
Trump: Yeah.
Von der Leyen: I knew it at the beginning, and it was indeed very tough, but we came to a good conclusion from both side.
Trump: We did.
Von der Leyen: So again, congratulations and many thanks.
Trump: Thank you, madam.
Von der Leyen: Thank you.
Trump: Okay. Do you have any questions, Chris?
Question: How did you come to a deal so quickly? Did the European Union come to a deal?
Trump: I, I think we both wanted to make a deal. Uh, you know, you said something that is very important. It's gonna bring us closer together. I think this deal will bring us very close together, actually. Sort of, uh, it's a partnership in a sense, but, uh, uh, it's a very good point, and it's something that's very important.
Question: But what's that one issue that, that if you could get one --
Trump: No, we had four or five.
Question: -- uh, pharmaceuticals.
Trump: No, no. Not, not pharmaceuticals. I mean, we're gonna be, as you know, a lot of companies are coming into the US, and that's unrelated to this deal. But it's, uh -- I think we, we, you know, this is, didn't just start today. We had a --
Von der Leyen: No.
Trump: -- a meeting. I wasn't sure. I, I said 50/50. I think you probably felt the same thing.
Von der Leyen: Yep.
Trump: But this started months ago, this negotiation. So we knew pretty much what we were, uh, getting into, and we were able to make a deal that's very satisfactory to both sides. So it's very, it's, uh, a tremendously, it's a very powerful deal. It's a very big deal. It's the biggest of all the deals. It will be the biggest of all the deals.So we're very honored to have done so. And your staff has been fantastic --
Von der Leyen: Yep.
Trump: -- and they worked together very --
Von der Leyen: They worked --
Trump: -- long and hard.
Von der Leyen: They worked hard and long, and many thanks to the teams on both sides. Uh, there was, as I said at the beginning, a heavy lifting you had to do. But, uh, many thanks also for the talks we had many times --
Trump: Yeah.
Von der Leyen: -- on the way to our goal. Um, and now we made it. And that's good.
Trump: We made it.
Von der Leyen: That's really good.
Trump: We made it. Anybody else? Yes, ma'am.
Question: I have a question for the EU Commission president. Um, what, what are the US concessions? What, what is the US giving up in the deal, if anything?
Von der Leyen: So as we -- The starting point was an imbalance, a surplus on our side and the deficit on the US side. And we wanted to rebalance the trade relation, and we wanted to do it in a way that trade goes on between the two of us, across the Atlantic. Because the two biggest economies should have a good trade flow between us --
Trump: Yeah.
Von der Leyen: -- and we, I think we hit exactly the point we wanted to find, rebalance, but enable trade on both sides, which means good jobs on both sides of the Atlantic, means prosperity on both sides of the Atlantic. And that was important for us.
Question: And so –
Trump: And, and again, the energy is a very important component because we have, uh, more energy than anybody else in that sense. And, uh, I, I think it was very wise that they buy a lot of energy and it's, uh, it's great stuff, and it solves a lot of problems. So that was a, uh, that was a great decision, I think.
Question: Uh, what about steel? Uh, what are the agreements on --
Trump: On what?
Question: Steel.
Trump: Uh, steel they're saying the way it is, uh, the steel and aluminum, et cetera, et cetera, that's a worldwide thing. That, that stays the way it is.
Von der Leyen: We have --
Question: [Inaudible] chips. Did you discuss that as far as the agreement? Chips?
Trump: Uh, chips is, uh, Howard, you might wanna describe the chips, please, if you would?
Howard Lutnick: Well, the expectation is in two weeks' time, we're going to come out with our, uh, our chips, uh, 232. And, uh, and that was one of the key reasons that the European Union came to talk to the president to try to resolve all things at one time. And, uh, well, I'll let you wait for the two weeks until you get to announce your plan, but, uh, we are going to be bringing chip manufacturing back to the United States of America.
Trump: We'll be doing a lot of chips. A lot of companies are coming in from Taiwan and from other places into the U.S, and they're doing that in order to avoid tariffs. And, uh, the president really, uh, avoided the tariffs in a, in a better way for them, much better, way, much more conclusive, uh, I think probably much more profitable. Definitely much more profitable, and got a lot of benefit from it, so, it was a very interesting negotiation. It was a, it was, I, I think it's gonna be great for both, both parties, John, really, I think you're, I think your various countries are very happy about this.
Question: Is there an industry in the U.S that you see maybe having the first impact of getting into this market that was non-accessible before, or -- what's the first call you made?
Trump: Yeah, I think cars, uh, cars basically, were not invited. Were not, I, I don't know if the word is not allowed or just, you know, you just kept 'em out somehow, right? [Laughs] But, uh, cars will be, you know, we have some cars that do terrific business and very, we do really well with the pickup trucks, with the SUVs. Uh, we do, uh, we have some great things and I, I think the people of Europe will have some diversification. I think that'll make 'em happy. Uh, so I think maybe cars would be the, the one that would go the biggest. And the, the second would be agriculture, the farmers. And we'll do it in very strict conjunction with, uh, with the president and the European Union. And they're coming into, likewise, they're coming into our country with, uh, great vigor. And, uh, I think, I think they're gonna, I think they're gonna make a lot of money with this. I think everybody is, I think it, and, and again, it's gonna bring a lot of unity and friendship. It's gonna work out really well.
Question: Mr. President, what's --
Trump: Okay.
Question: What's the next deal you're focused on now?
Trump: Say it?
Question: What's the next deal you're focused on now?
Von der Leyen: [Laughs]
Trump: That's an interesting question. This is the big one. This is the biggest of them all.
Von der Leyen: Yeah.
Trump: Uh, we're looking at, uh, deals with three or four other countries, but for the most part, uh, you know, I, I can't get them to understand that it's the letter. We just sent that letter. And that letter is, you know, very universal for most, I mean, most, you, you wouldn't be able to do this. You don't, you wouldn't have the time or the patience to be able to do a deal like this. Uh, most of the others are gonna be a certain tariff, and we're gonna keep it as low as we can. Uh, either generally smaller countries, uh, or countries we don't do much business with, uh, but that, they've already received, to a large extent, they've received a letter, they'll probably, uh, receive a letter of clarification or a confirmation type letter.
Von der Leyen: Yeah.
Trump: Which will go out sometime during this week.
Lutnick: Right.
Trump: Prior to August 1st. And the tariffs will start being paid by those countries prior to August, you know, on August 1st and beyond. Okay.
Question: Mr. President was part of the rush to get this deal done the Jeffery Epstein story out of --
Trump: Oh, you gotta be kidding with that.
Lutnick: [Laughs]
Trump: No, had nothing to do with it. Only you would think that, that had nothing to do with it.
Question: [Inaudible] the European business and American business. Businesses in this country, particularly small businesses are closing at a record rate. And then David Hammond here tomorrow with Keir Starmer, what does he need to do to help British business in this country?
Trump: I, I think everybody's gonna be happy with this. Uh, the prime minister of the UK, while he's not involved in this, will be very happy, 'cause uh, you know, there's a certain unity that's been brought there too. You know, we have a separate deal with them, but I think everybody's gonna, he's gonna be very happy to know. Look, he's friendly with all of you. He's a, I think he's a very good, a very good man, and, um, he's gonna be very happy to see what we did. I think UK is gonna be very, very happy. Thank you all very much. Appreciate it.
Aide: Thank you press. Thank you.
Note: [Crosstalk]
Trump: Thank you. Thank you, very much.
Question: [Inaudible]
Trump: Essentially, not, not that we can think of. Thank you.
Aide: Thank you guys.
Transcript courtesy of Roll Call