US, EU Finalize Major Trade and Energy Deal

The United States and European Union have finalized a major trade agreement to avert a potential tariff war, setting a baseline 15% tariff on most EU exports to the US, including automobiles, semiconductors, and pharmaceuticals, while exempting strategic products such as aircraft, chemicals, some generic drugs, and critical raw materials. The EU has pledged to purchase $750 billion in US energy and invest an additional $600 billion in the US, aiming to diversify its energy sources and boost American industries. The deal, reached just before an August 1 deadline that could have triggered 30% tariffs, is intended to provide stability and predictability for transatlantic trade, now valued at nearly $1.9 trillion annually. Some issues, like tariffs on wine and spirits, remain unresolved, with negotiations ongoing. Both parties also agreed to seek further zero-for-zero tariff agreements in the future. The agreement is seen as a reaffirmation of the transatlantic economic partnership amid global uncertainty.