US And EU Sign Landmark Trade Deal, Slash Tariffs To 15 Per Cent And Avert War

<p>The United States and the European Union &nbsp;reached a crucial framework trade agreement, halving a threatened tariff rate and easing fears of a damaging trade war between two of the world&rsquo;s largest economies.</p>
<p>The pact, announced on Sunday at Donald Trump&rsquo;s golf resort in Turnberry, Scotland, imposes a 15 per cent import tariff on most European goods, down from the 30 per cent rate the US president had warned of earlier this month.</p>
<p>US President Donald Trump and European Commission President Ursula von der Leyen finalised the arrangement after an hour-long meeting, bringing months of fraught negotiations to a conclusion, reported Reuters. &ldquo;I think this is the biggest deal ever made,&rdquo; Trump said, highlighting EU plans to channel around $600 billion into the US economy and step up purchases of American energy and military hardware.</p>
<h2><strong>Similar Terms To Trade Pact With Japan</strong></h2>
<p>The agreement, which follows a $550 billion deal Trump signed with Japan last week, is being billed as a stabilising step for transatlantic trade. Von der Leyen described the US leader as &ldquo;a tough negotiator&rdquo; but defended the outcome: &ldquo;The 15 per cent tariff applied across the board,&rdquo; she told reporters, adding, &ldquo;It was the best we could get.&rdquo;</p>
<p>While the deal mirrors key elements of Washington&rsquo;s recent trade framework with Japan, questions remain over unresolved issues, including tariffs on spirits. Trump said the EU would commit to $750 billion in US energy purchases in the coming years, along with &ldquo;hundreds of billions of dollars&rdquo; in defence procurement&mdash;benefiting major European firms such as Airbus, Mercedes-Benz and Novo Nordisk if the details hold.</p>
<p>German Chancellor Friedrich Merz welcomed the accord, saying it spared Germany&rsquo;s auto sector from harsher penalties. Prior to the agreement, German carmakers faced a 27.5 per cent tariff on vehicles and parts exported to the US.</p>
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<h2><strong>Key Exceptions and Next Steps</strong></h2>
<p>Though a 15 per cent tariff will apply to most goods, there are carve-outs. Aircraft, aircraft parts, certain chemicals, semiconductor equipment, some agricultural items, and critical raw materials will remain tariff-free. Steel and aluminium, however, will still face a 50 per cent levy, with discussions ongoing about possibly shifting to a quota system.</p>
<p>Trump has long criticised the EU for what he calls unfair treatment of US exporters. Another senior official from the American administration said the agreement would open vast opportunities for &ldquo;our farmers, our fishermen, our ranchers, all our industrial products, all our businesses.&rdquo;</p>
<p>But trade analysts warned the framework leaves scope for disputes. Carsten Nickel of Teneo described it as &ldquo;merely a high-level, political agreement,&rdquo; cautioning that lack of detail could lead to &ldquo;different interpretations along the way.&rdquo;</p>
<p>The deal will be seen as a win for Trump&rsquo;s trade agenda, but with unresolved issues&mdash;including tariffs on spirits and steel&mdash;the transatlantic negotiations are far from over.</p>