The United States and European Union have struck a major trade agreement imposing a 15% tariff on most EU exports to the US, averting a threatened 30% tariff that risked igniting a full-blown trade war. While the deal brings relief to global markets and provides clarity for businesses, it is widely seen as lopsided, with European leaders—especially in France and Germany—criticizing it as a capitulation to US pressure. Key sectors like autos and aviation secured some exemptions, but European pharmaceutical and steel industries face steep new costs. The EU also pledged to buy large amounts of US energy and military equipment, though questions remain about the feasibility of these commitments. Investors cheered the deal for reducing uncertainty, but European officials and industry groups warn it could raise prices and slow economic growth.
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