European governments and firms breathed a collective sigh of relief after the US-EU trade deal was sealed on Sunday, following nearly four months of tariff uncertainty.

Markets reacted positively: shares in European automakers jumped as much as 3% at Monday’s opening, while broader EU stock indices reached four-month highs. European bond yields fell, signaling investor optimism that transatlantic trade tensions may be easing.

Under the agreement, a 15% US tariff will be levied on most exports from the European Union, and the bloc will commit €514 billion ($600 billion) in investment to the US — its largest trading partner. Tariffs on some sectors have yet to be finalized.

While the new 15% rate is less severe than the 25% tariff imposed on European automakers in April and the 30% levy previously scheduled for August 1, it still represents a sharp increase from the 2.5% duty in place before US President Donald Trump's second term began.

European Commission President Ursula von der Leyen told reporters that the new tariff rate was "a good deal," adding it would return "stability" and "predictability" to transatlantic trade. She cautioned that "15% is not to be underestimated, but it is the best we could get."

German Chancellor Friedrich Merz echoed that sentiment, calling the agreement a means to "preserve our core interests" and avert "an unnecessary escalation in transatlantic trade relations." Yet he admitted disappointment over the outcome, stating, "I would have very much wished for further relief."

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