The United States and European Union have reached a major trade agreement that imposes a 15% baseline tariff on most EU goods entering the US, narrowly avoiding a full-blown trade war. While the deal averts harsher tariffs previously threatened by President Trump, it has sparked controversy in Europe, with leaders like France denouncing it as a 'submission' and warning of economic fallout. The agreement also includes EU commitments to purchase large amounts of US energy and military equipment, though experts question the feasibility of these pledges. Pharmaceutical and auto industries are among those most affected, with concerns about rising prices for consumers and ongoing uncertainty for manufacturers. Despite relief at avoiding immediate escalation, critics argue the deal is lopsided and leaves many unresolved issues, fueling fears of future trade tensions.
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