The United States and European Union have reached a trade framework setting a 15% tariff on most goods, averting the threat of a trade war with a global shock. The agreement comes after months of bargaining between President Donald Trump and European Commission chief Ursula von der Leyen, who met briefly at Trump’s Turnberry golf course in Scotland.
Under the deal, the EU will buy $750 billion worth of U.S. energy over three years to ease dependence on natural gas from Russia. Additionally, the EU has committed to investing $600 billion more in the United States than previously stated. The tariffs “for automobiles and everything else” will be a straight-across tariff of 15%, applying to most EU exports.
However, not all products are subject to the same rate. Zero-tariff agreements apply to strategic products like aircraft, chemicals, and generic drugs. The EU has also indicated that it will work to add more products to this list in the coming weeks.
While the agreement brings stability and predictability for businesses on both sides of the Atlantic, further details need to be sorted out before final approval is given by the European Commission and EU lawmakers.
Source: https://apnews.com/article/trump-scotland-tariffs-europe-8d2fb467d64f7fdfc4797dbebd54e8fc