US-EU deal sets a 15% tariff on most goods and averts the threat of a trade war with a global shock

EDINBURGH Scotland AP The United States and the European Union agreed on Sunday to a agreement framework setting a tariff on majority of goods staving off at least for now far higher imports on both sides that might have sent shockwaves through economies around the globe The sweeping announcement came after President Donald Trump and European Commission chief Ursula von der Leyen met briefly at Trump s Turnberry golf subject in Scotland Their private sit-down culminated months of bargaining with the White House deadline Friday nearing for imposing punishing tariffs on the EU s -member countries It was a very stimulating negotiation I think it s going to be great for both parties Trump explained The agreement he announced was a good deal for everybody and a giant deal with lots of countries Von der Leyen stated the deal will bring stability it will bring predictability that s very critical for our businesses on both sides of the Atlantic A great number of facets will require more work As with other contemporary tariff agreements that Trump stated with countries including Japan and the United Kingdom selected major details remain pending in this one Trump noted the EU had agreed to buy chosen billion worth of U S capacity and invest billion more than it already is in America as well as make a major military equipment purchase He mentioned tariffs for automobiles and everything else will be a straight across tariff of and meant that U S exporters have the opening up of all of the European countries Von der Leyen explained the tariffs were across the board all inclusive and that indeed basically the European field is open At a later news conference away from Turnberry she commented that the billion in additional U S capacity purchases was certainly over the next three years and would help ease the dependance on natural gas from Russia among the bloc s countries When the European union and the United States work together as partners the benefits are tangible Von der Leyen disclosed noting that the agreement stabilized on a single tariff rate for the vast majority of EU exports including cars semiconductors and pharmaceuticals is a clear ceiling she stated But von der Leyen also clarified that such a rate wouldn t apply to everything saying that both sides agreed on zero for zero tariffs on a number of strategic products like all aircraft and component parts certain chemicals certain generic drugs semiconductor equipment selected agricultural products natural support and critical raw materials It is unclear if alcohol will be included in that list And we will keep working to add more products to this list she announced while also stressing that the framework means the figures we have just explained to the masses but of curriculum details have to be sorted out And that will happen over the next weeks Further EU approval needed In the meantime there will be work to do on other fronts Von der Leyen had a mandate to negotiate because the European Commission handles arrangement for member countries But the Commission should now present the deal to member states and EU lawmakers who will ultimately decide whether or not to approve it Before their meeting began Trump pledged to change what he characterized as a very one-sided transaction very unfair to the United States I think both sides want to see fairness the Republican president communicated reporters Von der Leyen reported the U S and EU combined have the world s largest business volume encompassing hundreds of millions of people and trillions of dollars and added that Trump was known as a tough negotiator and dealmaker But fair Trump disclosed Trump has spent months threatening largest part of the world with large tariffs in hopes of shrinking major U S bargain deficits with plenty of key trading partners More just now he had hinted that any deal with the EU would have to buy down a tariff rate of that had been set to take effect But during his comments before the agreement was declared the president was sked if he d be willing to accept tariff rates lower than and commented no First golf then bargain talk Their meeting came after Trump played golf for the second straight day at Turnberry this time with a group that included sons Eric and Donald Jr In addition to negotiating deals Trump s five-day visit to Scotland is built around golf and promoting properties bearing his name A small group of demonstrators at the program waved American flags and raised a sign criticizing British Prime Minister Keir Starmer who plans his own Turnberry meeting with Trump on Monday Other voices could be heard cheering and chanting Trump Trump as he played nearby On Tuesday Trump will be in Aberdeen in northeastern Scotland where his family has another golf unit and is opening a third next month The president and his sons plan to help cut the ribbon on the new module The U S and EU seemed close to a deal earlier this month but Trump instead threatened the tariff rate The deadline for the Trump administration to begin imposing tariffs has shifted in latest weeks but is now firm and coming Friday the administration insists No extensions no more grace periods Aug the tariffs are set they ll go into place Customs will start collecting the money and off we go U S Commerce Secretary Howard Lutnick advised Fox News Sunday before the EU deal was revealed He added however that even after that people can still talk to President Trump I mean he s constantly willing to listen Without an agreement the EU reported it was prepared to retaliate with tariffs on hundreds of American products ranging from beef and auto parts to beer and Boeing airplanes If Trump eventually followed through on his threat of tariffs against Europe meanwhile it could have made everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the United States I think it s great that we made a deal in the present day instead of playing games and maybe not making a deal at all Trump commented I think it s the biggest deal ever made