US and EU strike trade deal days before White House deadline

Australia Broadcast Center

16 hours ago

The United States and European Union have unveiled a trade framework after a meeting between Donald Trump and European Commission President Ursula von der Leyen at the US president's Scottish golf course.
The deal, which will impact approximately a third of global trade, includes a 15 per cent tariff on EU goods entering the US and EU commitments to purchase US energy and military equipment.
But the agreement will calm fears of a spiralling trade war between the two economies, with the US president previously threatening 30 per cent levies on EU imports.
The announcement came after Ms von der Leyen travelled to Scotland for talks with Mr Trump to push a hard-fought deal over the line.
It also comes before a Trump administration deadline to impose tariffs on Friday.
"It was a very interesting negotiation. I think it's going to be great for both parties," Mr Trump said at a press conference after the talks.
Ms von der Leyen, sitting alongside Mr Trump following their hour-long talks, said the broad tariffs were "a good deal".
"It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic," she said.
As part of the deal, Mr Trump said Europe had promised to invest an extra $US600 billion ($915 billion) into the US and purchase another $US750 billion ($1.14 trillion) worth of energy.
It is the latest in a string of agreements struck between the Trump administration and trading partners, including Japan, the UK, Indonesia and Vietnam.
The EU has been hit by multiple waves of tariffs since Mr Trump reclaimed the White House.
It is currently subject to a 25 per cent levy on cars, 50 per cent on steel and aluminium, and an across-the-board tariff of 10 per cent.
Prior to Sunday's agreement, Washington had been threatening to hike across-the-board tariffs on EU imports to 30 per cent in a no-deal scenario.
ABC/wires