The United States and the European Union have reached a major trade agreement, narrowly avoiding a damaging tariff war that threatened to disrupt global markets. The deal, announced after high-stakes talks between President Donald Trump and European Commission President Ursula von der Leyen in Scotland, sets a 15% baseline tariff on most EU exports to the US, including automobiles and wine—half of the 30% Trump had threatened. In exchange, the EU has pledged to purchase $750 billion in US energy and invest $600 billion, while US exports to Europe will remain tariff-free. While the agreement brings relief to businesses and markets, it has sparked criticism in Europe for conceding to US pressure and leaving some sectors, like steel, exposed to high tariffs. The deal provides short-term stability but leaves lingering uncertainty about the future of transatlantic trade relations.
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