The United States and European Union have reached a major trade agreement, imposing a 15% tariff on most EU goods entering the US—half the previously threatened rate, but still much higher than before. The deal, announced by President Trump and EU Commission President Ursula von der Leyen, is being hailed by US officials as a victory for American exporters and a move to rebalance trade. In exchange, the EU has pledged to buy more US energy and military equipment, though European leaders admit they cannot guarantee all promised investments. While the agreement averts a full-blown trade war and brings relief to markets, many European leaders and industries are criticizing the deal as lopsided and a capitulation to US pressure. The new tariffs are expected to raise prices for consumers and could slow economic growth, with some sectors like aviation seeing specific benefits.
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