The United States and European Union have reached a last-minute trade agreement imposing a 15% tariff on most EU exports to the US, narrowly avoiding a threatened 30% tariff that risked sparking a full-blown trade war. The deal also includes EU commitments to purchase hundreds of billions of dollars in American energy and military equipment, though experts question whether these targets are realistic. While US markets and some investors cheered the clarity and stability the deal brings, European leaders, especially in France and Germany, criticized the agreement as a 'submission' and a poor outcome for Europe. Pharmaceutical and auto industries are among those most affected, with concerns about higher prices and slower growth. The deal is seen as a political win for President Trump, but leaves Europe divided and bracing for potential future escalations.
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