US and EU Reach Trade Deal, Avoiding New Tariffs

(Patria) - The United States and the European Union have reached a key trade agreement just days before the deadline set by former US President Donald Trump, thus avoiding significantly higher tariffs on European products.

The agreement was reached following a meeting between Trump and European Commission President Ursula von der Leyen, held at Trump's Turnberry golf resort in Scotland. The meeting lasted about an hour.

"This is the biggest deal of all," Trump stated. Von der Leyen emphasized that the agreement is the result of intensive discussions and great effort from both sides.

According to the agreement, the EU has committed to purchasing American energy worth $750 billion, as well as additional investments of $600 billion in American military equipment. It was also agreed to open markets for tariff-free trade, with a 15 percent tariff rate still applying to certain products, including automobiles.

The deal does not include pharmaceutical products, while tariffs on steel and aluminum remain high at 50 percent.

This agreement comes after weeks of tension, during which Trump threatened to increase tariffs on European products to 30 percent if an agreement was not reached by August 1. The European Union, in turn, had prepared countermeasures worth 93 billion euros.

Although an agreement has been reached, a joint statement has not yet been released, and the European Commission is expected to inform member state ambassadors about the details of the agreement on Monday.