by Manal Barakat, SeaNewsEditor
Just days before the deadline, the United States and the European Union successfully negotiated a comprehensive trade agreement, preventing a potential trade conflict on the Transatlantic.
According to news reports, the agreement includes a 15% tariff on most European goods.
The deal was finalised following a private meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen in Scotland.
President Trump described it as the "biggest deal ever made." Von der Leyen highlighted the agreement's role in stabilising businesses on both sides of the Atlantic.
The deal, concluded days before the US was set to impose a 30% tariff on EU imports, is seen as the most significant of Trump's trade agreements to date.
It follows preliminary deals with several Asian economies, including Indonesia, Japan, and the Philippines.
The EU, being one of the US's largest trading partners, saw nearly USD 2 trillion in two-way trade in goods and services last year.
What does the deal include?
German media Deutsche Welle highlighted that the new agreement has a 15% tariff that will broadly apply to European exports, including automobiles.
This marks a reprieve for Europe's auto industry, which had been subject to a 25% duty since April.
"We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15%," Trump said during the meeting.
However, the rate would not apply to steel and aluminium, currently taxed at 50%. Furthermore, the agreement did not address the spirits sector.
Additionally, the EU has committed to purchasing approximately USD 750 billion worth of US energy, increasing overall investment in the US by USD 600 billion, and placing a substantial order for military equipment.
The agreement also includes zero-for-zero tariffs on several strategic products, including aircraft and aircraft parts, some chemicals, and certain agricultural products.
Customers can also check the latest updates on our global trade and tariffs page for quick updates about the tariffs' overall development.
