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US-EU trade deal sends stocks higher

Jul 28, 2025, 6:23am EDT
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Donald Trump shakes hands with European Commission President Ursula von der Leyen.
Evelyn Hockstein/Reuters

European stocks rose after the US and European Union reached a trade agreement, despite widespread analysis that the bloc got the worst of the deal.

The EU will see 15% tariffs on most exports to the US, and agreed to spend hundreds of billions on US energy and weapons. But while a win for Washington, the deal is not a defeat for Brussels, said one senior economist: Instead, it is a “recognition [that] the EU needs the US more than the other way around.”

There were worrying signs that the deal may not be entirely secure, though: Trump and the European Commission president appeared to disagree on the details, with Trump saying tariffs on pharmaceuticals, steel, and aluminium may yet rise.

A chart showing destinations for US goods exports.
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