The European Union has agreed to reduce all of its tariffs to zero in a sweeping new trade deal with the United States, White House Trade Advisor Peter Navarro said, calling it a “magnificent achievement” of President Donald Trump’s economic policy.

“We get Europe reducing all its tariffs to zero. We continue our global tariff to fight the trade deficit at 15 percent, ” Navarro told reporters, describing the pact as a milestone in Washington’s push for “fair trade” with its partners.

The deal, according to Navarro, will reshape the transatlantic economic relationship. It includes a 15 percent US tariff on automobiles — down from the current 25 percent, though still higher than the 2.5 percent rate that existed before Trump took office. “Remember, before President Trump took office, the tariff was 2.5 percent compared to 10 percent in Europe. So that’s a great win,” Navarro said.

Other provisions lock in US tariffs on steel and aluminium without exemptions, while also securing major new commitments from Europe. Navarro said the EU will purchase $750 billion worth of liquefied natural gas (LNG), invest $600 billion in strategic US sectors to strengthen supply chains, and expand defence cooperation through NATO.

“We’re receiving $600 billion in investment in the US, specifically in strategic sectors that help secure and make our supply chains more resilient,” Navarro noted. “And we’re getting Europe to provide more of our arms in cooperation with the uplifted NATO effort.”

Navarro praised the agreement as both an economic and geopolitical breakthrough, linking it to broader security concerns in Europe. “For many years, the European Union was taking unfair advantage of the United States,” he said. “We have a massive trade deficit with the EU, which is a great threat to our national and economic security. It’s an emergency that we’re dealing with. This was an important mountain to climb. President Trump has gone to the top of that mountain today.”

He added that Russia’s war in Ukraine had helped galvanize Europe into closer cooperation with Washington. “In many ways, the Ukraine situation has been a total wake-up call for Europe. We’re ushering in a completely new and beautiful spirit and environment of cooperation with Europe. Nobody would have imagined the success of this,” Navarro said.

The Trump administration has framed the deal as not only removing barriers for American exporters — including industrial goods, seafood, and agriculture — but also as proof of the president’s hardline trade approach. “Anybody who criticises Trump’s trade policy, including the courts right now, simply has to look at this magnificent achievement that President Trump has secured, not just for the American people, but for Europe and the security of the world,” Navarro said.

– Ends

With inputs from ANI

Tune In