The United States and European Union have agreed on a trade deal, ending months of tension.
After key talks in Scotland between President Donald Trump and European Commission President Ursula von der Leyen, the two sides settled on a 15% US tariff on all EU goodsโhalf of the 30% Trump had previously threatened.
In return, the EU will invest $600 billion in the US, including military equipment, and spend $750 billion on American energy over the next three years.
Some sectorsโsuch as aircraft, chemicals, and certain agricultural productsโwill be exempt from tariffs. However, existing 50% US tariffs on global steel and aluminum remain.
Both leaders hailed the agreement. Trump called it a โhuge dealโ and a โwin-win,โ while von der Leyen emphasized its stabilizing effect on global trade.
Though the EUโs tariff rate is higher than the UKโs 10% deal, it matches Japanโs recent 15% arrangement.
Trade between the two powers totaled $976 billion in 2024, with the US running a $236 billion deficit.
Trump claims the deal will bring $90 billion in tariff revenue, while easing EU dependence on Russian energy.
European reactions were mixedโwelcoming stability but warning of higher trade costs. Full details of the agreement are still to be released.
