Table Stakes - July 28th

Good morning everyone,

I’m Daniel, and welcome to Table Stakes!

Here’s a look at today’s topics:

• US, EU Announce Landmark Trade Agreement

• Thailand, Cambodia Ceasefire Comes Due To Trump's Intervention

• Over 40 Killed In Islamic State Attack On Congolese Church

US, EU Announce Landmark Trade Agreement

_{By: Daniel Murrah, Staff Writer for Atlas}

European Commission President Ursula von der Leyen joined President Donald Trump in announcing a major US-EU trade agreement on Sunday, July 27th, 2025, after multiple months of delicate diplomatic efforts saved the world's two largest trading blocs from an impending trade war. Both leaders described the deal as a vital advancement in trans-Atlantic relations during urgent face-to-face discussions at Trump's Scottish resort.

The agreement enables a 15% tariff on European imports into the United States as a critical compromise that avoided the threatened 30% tariff which Trump had previously announced for August 1. This 15% tariff level unsurprisingly exceeds the previous EU-US import tariff rate of 1.2%, but it maintains a much lower level than Trump's proposed 30% and 50% tariffs during the negotiation. The European Union avoided implementing extra tariffs on US imports under this agreement, going back on retaliatory acts that EU officials had developed.

The economic link between these regions makes this deal an essential agreement. The EU maintains its position as the United States' principal trading partner since bilateral trade between them exceeded $1.68 trillion for goods during 2024. The agreement prevented a disastrous trade war escalation between the nations that would have caused widespread damage to the American and European domestic economies, as well as the entire world.

Leaders from both parties highlighted the historic significance of this agreement. Trump declared this agreement to be "the biggest deal ever" and von der Leyen stated it would establish stability and predictability for both economic systems. Trump stated about the negotiation "It was a very interesting negotiation" before adding "I think it's going to be great for both parties" capturing what Trump clearly sees as a diplomatic win for his administration as well as the United States..

Concessions and Commitments

The EU's significant economic promises in the agreement demonstrate how crucial both nations deemed the successful conclusion of their talks to be. The European Union agreed to spend $750 billion on US energy products, a key part of American leadership in global energy markets, especially in liquefied natural gas exports. The energy commitment stands as one of the largest bilateral energy agreements in modern trade history.

The European Union has announced plans to invest an additional $600 billion in the US economy as a demonstration of their market trust in America, which will undoubtedly boost American economic activity in the short term and lower import costs for Europe in the long term. The agreement also establishes EU defense procurement targets that combine security cooperation with economic advantages for American military suppliers.

The agreement also contains certain limitations. The deal leaves steel and aluminum together with pharmaceuticals outside its protection, meaning these sectors will continue to operate under existing tariffs and previous rules. These exceptions reflect the challenging nature of negotiations regarding industries that both administrations are already sensitive toward, due to national security implications as well as past struggles with other nations, primarily China. The 15% tariff affects two main sectors of automobiles and manufacturing industries according to the new rate.

The framework-based nature of this agreement requires additional negotiations to establish specific details. The agreement needs further negotiation regarding dispute resolution procedures as well as sectoral exceptions and tariff assessment methods before EU member states and the European Parliament can start their review process in 2026.

A Compromise

The journey toward this agreement started with rising tensions and dangerous brinksmanship that reduced US-EU trade relations to their worst state in many decades. In the beginning of 2024, the Trump administration initiated the near-trade war by launching new worldwide tariffs that affected steel production and aluminum production as well as automobiles. The United States implemented 10% tariffs on general EU goods but set 25% tariffs for vehicles and parts and 50% tariffs for steel and aluminum products, due to persistent trade deficits and what Trump called unfair market entry restrictions.

The situation between fall 2024 and spring 2025 became much worse than before. Trump proposed to impose tariffs of 30% on all products and 50% tariffs on specific products unless they reached a new trade agreement. The European Union announced a plan to impose retaliatory tariffs worth €93 billion ($109 billion) against US agricultural goods together with aviation products and technology items. Public trade disputes between nations brought both sides closer to starting a major trade conflict.

The negotiations became more complex because von der Leyen needed complete agreement from all 27 member states throughout the entire process. EU trade chief Maros Sefcovic maintained regular contact with US officials while maintaining regular updates about negotiation progress to European ambassadors. The fast-track timeline forced the EU to shorten its standard consultation procedures through regular teleconferences and daily briefings for member state representatives during the final stages. The internal coordination challenge introduced additional complexity to the already challenging negotiation because any member state could have stopped the entire process.

Trump decided to move his tariff deadline from June 1 to July 9 after his conversation with von der Leyen led him to delay the increase of tariffs. EU officials agreed to use a fast-track process since they recognized the impossibility of a full agreement within this limited period so they could establish a political agreement to stop tariff increases.

The last-minute negotiations were extremely demanding because negotiators confirmed there were three or four essential disagreements about European market entry conditions for American exports. The Scotland-based talks that stretched past midnight required complete support from all EU member states which involved remote briefings of ambassadors to obtain their final approval.

The agreement seeks to create a new balance between transatlantic trade after both the EU and the US have faced trade deficits while worrying about rising protectionist measures. The framework nature of the deal protects both sides from escalating tariffs yet sets conditions for US-EU trade relations to transform through the implementation of this historical agreement's broader vision.

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