The United States and the European Union reached a trade deal on Sunday, which ended a month’s deadlock.
“We have reached a deal. This is a good deal for everyone,” US President Donald Trump told reporters after a conversation with European Commission Chairman Ursula von Der Leyen in Scotland.
Before the August 1 deadline, Washington was trying to finalize an agreement with Washington, “We have a trade deal between the two largest economies in the world. And it’s a big thing. It’s a great thing.”
He said, “It will bring stability, it will bring priority. It is a lot of import for trade on both sides of Atlantic,” he said.
Next to the crunch talks, Trump on Friday gave a “a good 50–50 chance” to make a deal with the European Union.
What is in the European Union-American trade deal?
According to Trump, “We agree that the tariff of automobiles and everything else will be directly beyond the tariff of 15%.” Currently, most European Union goods face 10% tariffs, with a levy of 25% on cars and car parts.
But this rate will not apply to steel and aluminum, which are legs at 50%.
Trump stated that the block agreed to buy “$ 750 billion (€ 638 billion) energy” from the US and to buy $ 600 billion more in additional investments.
Leyen told reporters, “The purchase of American energy products wants to diversify our supply and contribute to Europe’s energy security. We will replace Russian gas and oil from the significant purchase of US LNG, oil and nuclear fuel.”
He said that the baseline tariff rate of 15% on imported European Union goods would be applicable to cars, semiconductors and drug goods.
At the beginning of the meeting, Trump said what is the “fairness” main remaining point.
“Europe is very close. We do not sell cars in Europe. We do not sell any great degree of essay agriculture,” he said.
What does business deal for the European Union mean?
Trade pact means that the block avoids 30% of the tarats that Trump threatened all goods from the European Union on 12 July.
The rate of 15% is the same as declared with Japan earlier this week. But this makes an important compromise, especially given that while talking to Layen, offered “zero-for-zero tafs for industrial goods”.
Nevertheless, the head of the European Union stated that they agreed to “zero-for-zero tafs on many strategic products”, including aircraft and aircraft parts, some chemicals and some agricultural products.
He said that there was no decision about the Spirits Sector in the Framework Trade Deal.
The trade treaty will need to be approved by all 27 member states.
How did European Union leaders react?
German Chancellor Frederick Merz welcomed the trade deal after the announcement.
“We managed to stop a trade struggle, which would have hit the export-oriented German economy barely,” Merz posted on X.
Edited by: Jennifer Camino Gonzalez
