US President Donald Trump on Sunday announced that he had struck a trade deal with European Union President Ursula von der Leyen as reported by news agency AFP. The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with US President Donald Trump to push a hard-fought deal over the line.
"We have reached a deal. It's a good deal for everybody," Trump told reporters after talks with von der Leyen at his golf resort in Turnberry, Scotland. The EU chief also hailed it as a "good deal".
The deal, that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment, will bring welcome clarity for EU companies.
"We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15 percent," Trump said.
He also said the bloc had agreed to purchase "$750 billion worth of energy" from the United States, as well as $600 billion more in additional investments in the country.
Negotiating on behalf of the EU's 27 countries, von der Leyen's European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.
"It's a good deal," the EU chief told reporters, sitting alongside Trump following their hour-long talks.
"It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic," she said.
Trump said pharmaceuticals -- a key export for Ireland, which the bloc has lobbied to shield -- "won't be part of" any deal.
However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate.
*With Agency Inputs
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