US and EU Reach 15% Tariff Deal to Avert Trade War

The United States and the European Union reached a significant framework trade deal that imposes a 15% tariff on most EU imports to the U.S., aiming to defuse months of trade tensions between the two allies. The agreement, announced after talks between President Donald Trump and European Commission President Ursula von der Leyen in Scotland, also includes strategic zero-tariff arrangements on key products like aircraft and pharmaceuticals, as well as $600 billion in EU investments in the U.S. and substantial EU purchases of U.S. energy and military equipment. Despite the 15% baseline tariff being less than the initially threatened 30%, it fell short of the EU's original goal of zero tariffs, and tariffs on steel and aluminum will remain at 50%. Both leaders emphasized that the deal would bring stability, predictability, and fairness to trade relations, with Trump highlighting the agreement as the largest deal ever made and a step toward correcting trade imbalances. The agreement mirrors aspects of the recent U.S.-Japan trade framework and is part of Trump's broader strategy to reorder global trade and reduce long-standing U.S. deficits.