The U.S. has struck a framework trade agreement with the European Union, imposing a 15% import tariff on most EU goods, half the threatened rate. This move aims to avoid a bigger trade war between the two allies, which account for almost a third of global trade. Trump and European Commission President Ursula von der Leyen announced the deal at Trump’s luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line. The deal mirrors key parts of the framework accord reached by the U.S. with Japan, but leaves many questions open, including tariff rates on spirits.<\/p>\n\n\n\n
The deal calls for $750 billion of EU purchases of U.S. energy in coming years and “hundreds of billions of dollars” of arms purchases. It likely spells good news for a host of EU companies, including Airbus, Mercedes-Benz, and Novo Nordisk, if all the details hold. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany’s export-driven economy and its large auto sector hard.<\/p>\n\n\n\n