The European Union and the United States reached a provisional trade agreement to avoid a potentially devastating tariff war between two of the world’s largest economies, thus ending a race against time before the self-imposed deadline of August 1.
According to the agreed terms, finalized on Sunday by the President of the European Commission, Ursula von der Leyen, and the President of the United States, Donald Trump, during a meeting in Scotland, the majority of EU exports to the American market, including those from the automotive sector, will be subject to a 15% tariff.
The agreement now reached of a 15% rate is lower than the 20% rate that Trump imposed, and later suspended, in April, as part of his controversial and self-styled “reciprocal tariffs,” as well as the 30% rate he threatened to impose in a letter sent to von der Leyen earlier this month.
“It was a very interesting negotiation. I think it will be great for both sides”, said U.S. President Donald Trump to reporters, who added that this was “a good deal for everyone… a huge agreement with many countries”.
Ursula Von der Leyen, President of the European Commission, also welcomed the agreement, stating that it would bring “stability and predictability, which is very important for our businesses on both sides of the Atlantic”.
According to “Reuters,” Trump stated that the EU has committed to purchasing about €700 billion in American energy, to increase investment in the United States by more than €560 billion, and to make a large order of military equipment.
