Trump Threatens 35% EU Tariffs Over $600B Investment Pledge

story

AUG 6

Above: U.S. President Donald Trump announcing an EU-U.S. trade deal on July 27, 2025, in Scotland. Image copyright: Andrew Harnik/Getty Images

story last updated AUG 7

The Spin

Pro-Trump narrative

The trade deal with the EU is a coup for the U.S. The staggering $600 billion investment, coupled with Europe’s pledge to purchase $750 billion worth of American energy, will turbo-charge the economy, all while increasing market access for American producers. Trump’s 35% tariff threat secures the deal by ensuring that the EU does not renege on its commitments.

CNBC Unherd

Anti-Trump narrative

The investment figures provided by the White House are utterly delusional. It is frankly impossible for the EU to triple its investment in the U.S. while simultaneously purchasing more American energy each year than the U.S. currently exports. Like so much of the administration’s efforts, these numbers serve merely as theatre rather than as the basis for substantive policy.

The Hill