WASHINGTON - The United States and European Union announced a comprehensive trade agreement Sunday, ending months of tense negotiations and averting the threat of punitive tariffs that had strained transatlantic relations.
The deal establishes a 15% baseline tariff on most goods traded between the blocs, significantly lower than the 50% tariffs President Trump had previously threatened. Key exemptions include aircraft, medical devices, and alcoholic beverages, according to sources familiar with the negotiations.
Under the agreement, the EU commits to purchasing $750 billion worth of energy from the United States and investing an additional $600 billion in the U.S. economy, addressing long-standing American concerns about trade imbalances. The deal represents a major shift from months of tense negotiations that had threatened to severely disrupt transatlantic commerce.
"This agreement demonstrates that fair and reciprocal trade benefits both sides of the Atlantic," Trump said in a statement from the White House. European Commission President Ursula von der Leyen called the deal "a new chapter in EU-U.S. economic partnership."
The agreement comes just weeks before the expiration of a temporary truce that had prevented the implementation of higher tariffs. Financial markets rallied on news of the deal, with European stocks posting significant gains.
The trade pact must still be ratified by the European Parliament and faces potential challenges from member states concerned about agricultural market access. Implementation is expected to begin within 90 days of final approval.
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