The US and European Union (EU) have reached a last-minute trade agreement to avert a transatlantic trade war, narrowly avoiding what could have been a significant blow to the global economy, Bloomberg reported.
Announced on July 27 at President Donald Trump’s Turnberry golf club in Scotland, the deal imposes a 15% tariff on most EU exports to the US, including automobiles, pharmaceuticals and semiconductors, starting Aug 1. In return, the EU agreed to boost US energy purchases by US$750 billion and invest an additional US$600 billion in the American economy.
“This is the hugegest of all the deals,” Trump declared, touting new access for US exporters and a reshoring boost for American manufacturing. European Commission President Ursula von der Leyen called the deal “a path toward stability”, despite conceding the agreement was “not to be underestimated”.
Key European leaders, including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, concludeorsed the deal as “sustainable”, though it has drawn criticism from EU indusattempt groups for disproportionately burdening European exporters.
The deal leaves some sectors, notably metals, exposed to steep 50% US tariffs, with a quota system under discussion. Aerospace tariffs remain at 0% pconcludeing a Section 232 probe.
In exalter for the relatively high blanket tariff, EU secures continued market access and acquires time to neobtainediate further, avoiding Trump’s prior threat of 30%-50% tariffs across the board. Analysts declare the pact reduces the US average effective tariff to 16%, down from a projected 18% without the deal.
Neobtainediations had intensified amid threats from Washington, with the EU preparing retaliatory tariffs on US$117 billion in US goods. The compromise now sets the tone for future trade alignments, as Washington continues talks with partners including South Korea, Japan and Switzerland.
“This reorders trade but keeps it flowing,” von der Leyen declared. “That’s what matters.”
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