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EU-US trade deal at risk as Trump threatens tariffs over Google fine
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One year after the controversial Turnberry trade deal between EU Commission President Ursula von der Leyen and US President Donald Trump, the agreement is in jeopardy. Trump is threatening 'substantial' punitive tariffs after the EU imposed an 890 million euro fine on Google. The European Parliament has warned of the deal failing, with trade committee head Bernd Lange stating the EU must be prepared for all scenarios. The Turnberry Deal, signed at Trump's Scottish golf resort, aimed to resolve tariff disputes by eliminating EU tariffs on US cars and industrial goods while maintaining a 15% US tariff on EU exports. The EU also committed to purchasing US liquefied gas and investing in the US. A new 10% US tariff already took effect, justified by alleged insufficient EU action against forced labor. The EU Commission rejects the accusation but appears relieved the 10% may be offset against the existing 15% tariff. Further US tariffs could provoke a new trade war.
Source report
A year ago, EU Commission President von der Leyen and US President Trump agreed on a tariff deal. Now the deal is in jeopardy again.
Published: 28 July 2026, 19:55
The tariff agreement between the USA and the EU was sealed on 27 July 2025 and could already be history. Photo: Evelyn Hockstein / Reuters
By Eric Bonse, from Brussels
One year after the controversial trade deal with US President Donald Trump, the EU is bracing for new trouble. Trump threatens "substantial" punitive tariffs, after Brussels last week imposed a fine of €890 million on the US internet company Google. The European Parliament has warned of the trade deal failing.
The EU must be "prepared for all scenarios," said Bernd Lange (SPD), head of the trade committee. If the Americans do not comply with the agreements of July 2025, "the EU can and must react decisively." If Trump imposes new punitive tariffs, the trade agreement must be suspended, added his Italian parliamentary colleague Brando Benifei.
The Turnberry Deal
The so-called Turnberry Deal was intended to resolve the years-long tariff and trade disputes. It provides for:
- The abolition of all EU tariffs on US cars and other industrial goods
- A tariff rate of 15 percent on EU exports to the USA
- EU commitments to purchase large quantities of US liquefied gas
- Massive EU investments in the USA
The agreement prevented a trade war and brought calm, the EU Commission explained on the anniversary on 27 July. EU Commission President Ursula von der Leyen signed the deal at Trump's golf resort in Turnberry, Scotland. The agreement was criticized from the start for disadvantaging European industry, a claim von der Leyen rejects.
Trouble Looms Again
But now a new escalation threatens. Trump warned that the EU will pay a "very high price" for the Google fine, and that a "significant tariff" will be imposed on the Europeans "as soon as possible." Only on Friday did a new US surcharge of 10 percent come into effect, which Trump justified with allegedly insufficient EU measures against forced labor.
The EU Commission rejected the accusation but appeared relieved, as the 10 percent is apparently to be offset against the existing 15 percent tariff. Another US punitive tariff, as Trump now threatens, would nullify this calculation and provoke a new trade war.
Source
taz.de - taz.deWestern
Part of this Story
EU Accepts US Forced Labor Tariffs if Trump Respects 15% Cap