US, EU Agree 15% Tariffs Deal Avoids Trade War

The European Union and the United States, led by President Donald Trump and European Commission President Ursula von der Leyen, have reached a comprehensive trade agreement that includes a 15% tariff on most EU imports to the US, including cars, to avoid a looming trade war. The deal also involves the EU committing to invest $600 billion into the US economy, purchase $750 billion of American energy, and buy significant amounts of US military equipment. Both leaders described the agreement as a major deal that aims to rebalance trade relations and prevent the imposition of higher tariffs that were set to take effect on August 1. The agreement sets a clear tariff ceiling and includes zero tariffs on certain sectors such as aeronautics, chemicals, and agricultural products. Von der Leyen emphasized that the energy purchases would help diversify Europe’s sources away from Russian gas and oil, enhancing energy security. This deal was finalized during a meeting at Trump’s Turnberry golf resort in Scotland and is seen as a way to stabilize the economic relationship between the two largest trading partners globally.