The United States and European Union have reached a major trade agreement, narrowly avoiding a damaging trade war by setting a 15% tariff on most European goods entering the US—half the 30% rate previously threatened by President Trump. In exchange, the EU agreed to purchase $750 billion in US energy and invest $600 billion in the US by 2028, as well as increase spending on American military equipment. While the deal brings relief to global markets and provides clarity for businesses, it has faced sharp criticism from European leaders, particularly in France, who see it as a capitulation to US pressure. The agreement is seen as a political win for Trump and has boosted investor sentiment, but many in Europe view it as a 'dark day' that undermines EU solidarity. The deal also includes significant implications for industries such as automotive and aviation, with some sectors facing higher costs and others securing key exemptions.
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