U.S. President Donald Trump announced this Sunday (27th) a trade agreement with European Commission President Ursula von der Leyen that sets a general tariff of 15% between the two blocs.
The deal was reached during a meeting in Turnberry, Scotland, just hours before a higher tariff of 30%—scheduled to take effect on August 1st—was due to come into force.
In addition to the new tariff, the agreement provides that the European Union will purchase USD 750 billion worth of energy from the U.S. and increase by USD 600 billion its investments in military equipment and in opening markets to zero-tariff trade.
The structure of the deal comes after the United States raised concerns over the high trade deficit with the European bloc and the failure to reach an agreement by the previous deadline of July 9th.
During the press conference, Von der Leyen described Trump as “a tough negotiator,” while the U.S. president called the deal “the biggest ever made” by the United States.
Source: Mercado
