US, EU strike 15% tariff deal to avert trade war

Saudi Gazette

3 days ago

EDINBURGH, Scotland — The United States and the European Union reached a sweeping trade agreement Sunday to set a 15% tariff on most goods, avoiding a transatlantic trade war that could have disrupted global markets.
The deal was announced after a brief meeting between President Donald Trump and European Commission President Ursula von der Leyen at Trump's Turnberry golf resort in Scotland.
The agreement comes just days before a Friday deadline the White House had set to impose punitive 30% tariffs on EU goods.
'It was a very interesting negotiation. I think it's going to be great for both parties,' Trump said. 'It's a good deal for everybody and a giant deal with lots of countries.'
Von der Leyen said the deal would provide 'stability and predictability,' calling that crucial for businesses on both sides of the Atlantic.
As part of the framework, the EU will purchase $750 billion worth of U.S. energy over the next three years and invest an additional $600 billion in the U.S. economy.Trump said the two sides also agreed to a major military equipment sale and that all automobile tariffs would be set at 15%.'This opens up all of the European countries to U.S. exporters,' Trump said.Von der Leyen clarified that while 15% would be the standard tariff, the agreement includes 'zero-for-zero' provisions on a list of strategic products, including aircraft and parts, certain chemicals, generic medicines, semiconductor manufacturing equipment, some agricultural goods, natural resources, and critical raw materials. It was unclear whether alcohol would be covered.'This framework stabilizes a single, 15% tariff rate for the vast majority of EU exports,' she said. 'But we will keep working to add more products to this list in the coming weeks.'The European Commission must still present the framework to EU member states and lawmakers for approval, which could take several weeks.Trump has long criticized what he calls the unfair nature of U.S.–EU trade and had pushed for more balanced terms. 'I think both sides want to see fairness,' he said.At a news conference, von der Leyen said the EU and the U.S. remain the world's largest trading partners, representing trillions of dollars in commerce and hundreds of millions of people. She praised the agreement as a sign of tangible cooperation.Trump, meanwhile, rejected suggestions he would settle for less than a 15% tariff. 'No,' he told reporters before the deal was announced.The president played a round of golf with his sons Eric and Donald Jr. before the meeting. His five-day trip to Scotland includes visits to Trump-branded golf properties in Turnberry and Aberdeen.Before Sunday's agreement, the EU had prepared retaliatory tariffs on hundreds of American products, from beef and auto parts to beer and Boeing jets.Trump's proposed tariffs would have raised prices on European goods such as French cheese, Italian leather, German electronics, and Spanish pharmaceuticals.'I think it's great that we made a deal today instead of playing games,' Trump said. 'I think it's the biggest deal ever made.' — Agencies