US-EU trade deal: Key takeaways from agreement struck by President Trump and Ursula von der Leyen
The deal requires Europe to spend billions of dollars on US energy products and weapons, as well as a 15 percent tariff on most EU exports to the US includes cars.
It was announced after a meeting on Sunday between European Commission President Ursula von der Leyen and US President Donald Trump at his Turnberry golf resort in Scotland.
The Independent takes a look at the details of the agreement.
Trump 'could change his mind even after the deal is signed'
'While the deal has avoided a much worse outcome for now, it remains to be seen whether it will last,' said Jack Allen-Reynolds, Deputy Chief Euro-zone Economist of Capital Economics, adding that Germany will be hit harder the most countries.
'The fine details of the deal may not yet have been agreed. And President Trump could still change his mind even after the deal has been finalised and signed.'
Although the 15 percent tariff is only half of what Trump had threatened, the deal will still disappoint many European leaders who already criticised the UK's acceptance of 10 percent US tariffs in May as a poor outcome.
Trump had previously warned that tariffs could rise to 30 per cent if no agreement was reached by August 1.
'Today's deal creates certainty in uncertain times . . . for citizens and businesses on both sides of the Atlantic,' von der Leyen said.
While Chancellor Friedrich Merz welcomed the avoidance of a trade war, Wolfgang Niedermark, board member of the Federation of German Industries, called the agreement 'an inadequate compromise' with 'painful tariffs' likely to harm Germany's export-driven industry.
What has been agreed by the EU and the US
Almost all EU goods entering the US are subject to a 15 percent baseline tariff, including cars, semiconductors and pharmaceuticals.
Tariffs on European steel and aluminium will stay at 50 percent.
The EU has pledged $750 billion in strategic purchases, covering oil, gas, nuclear, fuel and chips during Trump's term.
Brussels also agreed to invest $600bn, including buying military equipment, during his second term.
There will be zero-for-zero tariffs on 'all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials', von der Leyen said.
What could change in the deal
The steel and aluminium 50 percent rate could later replaced by a quota system, according to the EU Commission chief.
More products could be added to the zero-for-zero tariffs.
It remains unclear what tariffs European wine and spirits producers will be subject to in the US.
Trump retains the ability to increase tariffs if European countries don't stick to their investment commitments, a senior US administration official told reporters in Washington on Sunday.
Some tariffs could change after the US announces the result of its 232 trade investigation, which determines the impact of imports on national security, in two weeks.
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