FX.co ★ U.S. and EU Strike Landmark Trade Deal to Avert Tariff War

The United States and the European Union have successfully negotiated a trade agreement to stave off a potential trade war, establishing a 15% tariff on a majority of EU exports, notably including automobiles. Announced by President Trump and European Commission President Ursula von der Leyen in Scotland on Sunday, Trump touted the pact as "the biggest of all the deals," while von der Leyen emphasized the agreement's role in fostering "stability" and "predictability." Although full details have not been revealed, von der Leyen clarified that this 15% tariff is comprehensive and will not be compounded with existing industry-specific tariffs, as it applies to drugs, semiconductors, and automobiles. She also mentioned that tariffs on metals would be reduced, accompanied by a quota system. However, Trump contradicted this by stating that pharmaceuticals and metals are exempt from the deal. The EU further committed to purchasing $750 billion in U.S. energy, investing $600 billion in the U.S., and enhancing market access for American products, including military hardware. Resolutions regarding wine and spirits are still under discussion.