US and EU reach trade deal for 15% tariffs

The United States and the European Union reached a trade agreement this Sunday to impose 15% tariffs on European goods. The decision was announced following a meeting between Donald Trump and Ursula von der Leyen, which lasted about an hour, at the US President's golf resort in Turnberry, Scotland. The tariff to be applied is lower (half) than the 30% tariff that the US leader threatened to impose starting Friday, August 1st.

The President of the European Commission said the agreement is "comprehensive," while Trump indicated that it includes the automotive industry but excludes pharmaceuticals, steel, and aluminum (metals that will remain subject to 50% tariffs). According to Politico , the European Union agreed to make $750 billion worth of energy purchases from the US, invest $600 billion more than planned in the country, and acquire a "large amount of military equipment." The timeframe for these investments has not yet been disclosed.

"We've reached a deal. And it's a good deal for everyone. It's going to bring us closer together… it's a partnership, in a way," Donald Trump told reporters, according to the BBC , highlighting that it's the "biggest deal ever made." Furthermore, the US president said the agreement will be "great for cars" and will have an impact on agriculture.

In turn, Ursula von der Leyen said that the agreement was reached after "tough negotiations" and that it will "rebalance" trade relations between the United States and the European Union. "The negotiation process was really difficult, but we reached a good conclusion for both sides," added the President of the European Commission, who said that the agreement will bring "stability" and "predictability." "This is very important for our businesses on both sides of the Atlantic."

The 15% tariff on European goods is in line with the tariff surcharges that have been imposed on Japanese goods imported into the United States.

Trump announces trade deal with Japan that includes 15% tariffs

Before the meeting, the US President had said there was a "50-50" chance of reaching an agreement on tariffs between the two blocs. "There are three or four sticking points. I'd rather not talk about them. We'll discuss them. The main [obstacle] is fairness," Trump said, according to Reuters . Von der Leyen, meanwhile, acknowledged the need to "rebalance" trade between the EU and the US, the "two largest economies in the world."