Trump’s EU Deal: Thomas Lee Says $1.35 Trillion Agreement Removes Market ‘Tail Risk’

A trade deal was reached between the US and EU on July 27, amid a 90-day tariff pause initiated by President Trump in April 2025. During this period, tariffs were lowered to a 10% baseline to facilitate bilateral trade negotiations with various partners.

Under the agreement between President Donald Trump and European Commission President Ursula von der Leyen, the US will impose a 15% tariff on all EU goods. In return, the EU will open its market to US goods with zero tariffs, invest $600 billion in the US, and purchase $750 billion worth of US energy.

Although the White House has called the deal historic, Republicans have criticized it, arguing that a 15% tax on EU goods could drive up inflation. The new rates will take effect on August 1. ​​

Thomas Lee Says New Deal Favors Equities: What About Crypto? 

According to Tom Lee from FS Insight, the new U.S.-EU trade deal removes a “tail risk”, a rare but serious threat, that could have hurt the stock market. Lee’s comments reflect what many investors are feeling: trade deals like this can boost confidence and support both the stock and crypto markets.

At the time of writing, Bitcoin is trading around $119,000, 1% up in the past 24 hours. Most top altcoins are also up, with Ethereum, Solana, and Avalanche showing steady gains. The total crypto market cap is now above $3.9 trillion.

What Comes Next: All Eyes on a U.S.-China Deal

It’s still early to tell how the U.S.-EU trade deal will affect crypto in the long run, but the market’s first reaction has been positive. Both stocks and crypto are moving up as investors feel more confident. Now, all eyes are on the U.S.-China trade talks. Trump said the U.S. is “very close to a deal with China.”

Adding weight to Trump’s optimism, the Financial Times reported that the U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing. The Commerce Department’s industry and security bureau, which oversees export controls, has been instructed to avoid tough moves on China in recent months, according to current and former officials. This signals serious commitment to securing a deal and supports Trump’s efforts to arrange a meeting with President Xi Jinping this year.

The two countries are approaching an August 12 deadline to finalize a trading agreement, with Treasury Secretary Scott Bessent scheduled to meet Chinese officials in Stockholm for another round of talks. So far, the trade truce reached in May has lowered tariffs a lot – Chinese goods face about 50% tariffs, down from 145%, while China charges U.S. goods at least 10%, down from 125%.

If they reach a final deal, it could bring more relief to global markets and stop steep tariffs from coming back. Trump has also threatened new tariffs as high as 50% on some countries – 30% on South Korean goods and up to 50% on Brazilian goods. These threats are making markets nervous. If the U.S.-China deal succeeds, it could ease trade tensions even more and boost markets. But if talks fail, we might see more market ups and downs.