EU and US agree to trade deal with 15% tariffs for European exports

The Age

4 days ago

Frankfurt: The European Union has ended months of dispute with US President Donald Trump by accepting a deal that imposes 15 per cent tariffs on billions of dollars in exports, submitting to the terms out of concern he might otherwise punish Europe with higher penalties.
The outcome appears set to lift prices for American consumers and hurt sales for European exporters, in the latest example of global brinksmanship as Trump forces tariffs on major economies in the hope of raising huge sums of revenue for the US government.
In a surprise addition to the deal, the EU agreed to buy energy worth $US750 billion from the US over the years ahead – part of the bloc's broader objective of reducing reliance on Russian gas.
Trump said the EU would also invest $US600 billion more in the US economy, echoing a vague investment pledge in a trade deal with Japan last week.
The deal was unveiled in Scotland on Sunday during Trump's visit to his golf estates, as hundreds of protesters gathered to object to his visit, while supporters chanted his name outside some of his events.
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'I think this is the biggest deal ever made,' Trump told reporters after he emerged from talks with European Commission President Ursula von der Leyen.
European industries were divided on the trade dispute over recent weeks, with German car makers anxious to gain a deal because of the threat to their sales from even higher tariffs, while French industry canvassed retaliation against US demands.
Von der Leyen confirmed the 15 per cent tariff applied 'across the board' and framed the outcome as a win for stability.