President Donald Trump and the European Union have reached a major trade agreement imposing a 15% tariff on most EU goods entering the U.S., narrowly avoiding a threatened 30% tariff and a full-blown trade war. While the deal brings relief to global markets and provides clarity for businesses, many European leaders have criticized it as a lopsided arrangement that favors the U.S. and forces Europe into submission. The agreement includes exceptions for key industries and promises increased European purchases of American energy and military equipment, but some EU officials admit they cannot guarantee the scale of these commitments. The pharmaceutical and steel sectors are among those hit hardest by the new tariffs, with concerns about higher costs and slower economic growth. Despite the market's positive reaction, the deal has left Europe divided and wary of future U.S. trade policy under Trump.
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