The United States of America and European Union have agreed on a trade deal, settling on a 15% US tariff on all EU goods.
After negotiations between President Donald Trump and European Commission President Ursula Von der Leyen in Scotland, the pair agreed on a US tariff on all EU goods of 15%.
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The 15% tariff is half of the 30% import tax rate Trump had threatened to implement starting on Friday.
Sunday’s agreement was announced after private talks between Trump and Von der Leyen at his Turnberry golf course in South Ayrshire.
Trump said the 27-member bloc would open its markets to US exporters with zero per cent tariffs on certain products.
Von der Leyen also hailed the deal, saying it would bring stability for both allies, who together account for almost a third of global trade.
Following the meeting, President Trump said “We have reached a deal. It’s a good deal for everybody.”
“It’s going to bring us closer together,” he added.
Von der Leyen also hailed it as a “huge deal”, after “tough negotiations”.
According to a BBC report, Trump said the EU would boost its investment in the US by $600bn (£446bn), purchase hundreds of billions of dollars of American military equipment and spend $750bn on energy.
That investment in American liquified natural gas, oil and nuclear fuels would, Von der Leyen said, help reduce European reliance on Russian power sources.
“I want to thank President Trump personally for his personal commitment and his leadership to achieve this breakthrough,” she said.
“He is a tough negotiator, but he is also a dealmaker.”
The US President however said that a 50% tariff he has implemented on steel and aluminium globally would stay in place.
Trade in goods between the EU and US totalled about $975.9bn last year. Last year the US imported about $606bn in goods from the EU and exported around $370bn.
Aside the EU, Trump has also struck tariff agreements with the UK, Japan, Indonesia and Vietnam.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
