The United States and European Union have struck a major trade deal, imposing a 15% tariff on most EU goods entering the US—half the rate previously threatened by President Trump. The agreement, announced just before a looming deadline, is being hailed by US officials as a win for American exporters and a move to rebalance trade. European leaders, however, are divided: some see relief in avoiding a full-blown trade war, while others, especially in France and Germany, criticize the deal as a capitulation that will hurt European industries. The deal also includes commitments for the EU to buy more US energy and military equipment, but questions remain about the feasibility of these promises. Investors cheered the clarity and stability the deal brings, but concerns linger over higher prices, slower growth, and the precedent set for future transatlantic trade relations.
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