U.S. and EU Forge Landmark Trade Deal to Prevent Economic Rift

The United States and the European Union have secured a landmark trade agreement, averting a potential economic rift that could have escalated into a full-blown trade war. The deal imposes a 15% U.S. import tariff on most EU goods while potentially stabilizing nearly a third of global trade.

The announcement followed negotiations between European Commission President Ursula von der Leyen and U.S. President Donald Trump, who met on Trump's golf course in Scotland. The agreement, hailed by Trump as a historic trade deal, also includes significant EU investments in the U.S. market.

While the deal brings clarity to EU companies, the baseline tariff is seen as a less favorable outcome compared to earlier ambitions for a zero-tariff arrangement. The agreement also mirrors a recent framework established with Japan, although tariffs on steel and aluminum remain at a higher rate.

(With inputs from agencies.)