Turnberry explained: The EU-US trade deal that never was

The EU-US trade deal, often referred to as the Turnberry agreement, emerged from a 2025 handshake deal at Trump’s golf resort in Scotland. The deal aimed to reduce US tariffs on EU goods from 20% to 15% in exchange for the EU lowering its own tariffs to zero on hundreds of US industrial and agricultural products. However, the agreement never became a formal free trade deal, remaining a political commitment rather than a binding treaty. The EU’s trade surplus with the US, particularly in goods, was a key issue for former President Trump, who argued that tariffs were necessary to address perceived unfairness. The US also objected to EU production standards blocking American products like chlorine-washed chicken and hormone-treated beef. Trump’s threats escalated to 200% tariffs on EU goods, including champagne, before negotiations led to the Turnberry agreement. The EU was required to implement tariff cuts through legislation, but the European Parliament (MEPs) opposed the deal. Concerns grew when the US violated the agreement by raising tariffs on steel and aluminum above the agreed 15% limit. Lead negotiator Bernd Lange pushed for stricter safeguards, including a 'sunrise clause' to suspend EU tariff cuts if the US failed to comply. The Turnberry deal was never a full free trade agreement but a framework committing the EU to buying billions in US energy and other pledges outside its control. MEPs demanded tougher conditions, and the EU’s legislative process stalled the deal’s progress. As of now, the agreement remains unresolved, leaving transatlantic trade tensions unresolved.