The United States and the European Union have struck a framework trade agreement that imposes a 15% import tariff on most EU goods—half the initially threatened rate—averting a major transatlantic trade war. The deal was announced on Sunday after U.S. President Donald Trump and European Commission President Ursula von der Leyen met for over an hour at Trump’s golf resort in Turnberry, Scotland. “I think this is the biggest deal ever made,” Trump said, highlighting EU plans to invest around $600 billion in the U.S. and significantly ramp up purchases of American energy and military equipment. Von der Leyen, calling Trump a “tough negotiator,” said the 15% tariff was “the best we could get,” and would apply across the board. She described the agreement as one that would bring “stability” and “predictability” between two of the world’s largest economies. Under the deal, the EU will reportedly purchase $750 billion worth of U.S. energy and “hundreds of billions” in arms, if the full details hold. The agreement marks a major shift after years of tense relations and U.S. accusations of unfair EU trade practices. Still, many in Europe see the 15% baseline tariff as high, especially after initial hopes for a zero-for-zero deal. The EU had braced for a 30% tariff, which Trump threatened earlier in July if negotiations failed. The euro rose slightly against the dollar, sterling, and yen following the announcement. Trump eyes trade legacy The deal is likely to be promoted by Trump as a signature achievement in his ongoing campaign to reduce U.S. trade deficits and reshape global commerce in favour of American exporters. He has already signed similar preliminary trade deals with Japan, the UK, Vietnam, and Indonesia, although his goal of “90 deals in 90 days” remains far off. Trump has long accused the EU of exploiting the U.S. on trade, once declaring the bloc was “formed to screw the United States.” He maintains that his tariffs are generating “hundreds of billions” in revenue for the U.S., despite concerns from economists about inflationary pressures. With the EU trade deficit standing at $235 billion in 2024, the Trump administration has increasingly focused on rebalancing trade flows. European officials counter that the U.S. maintains a surplus in services, helping offset the goods gap. In anticipation of a no-deal scenario, the EU had prepared counter-tariffs worth €93 billion ($109 billion) and considered using its anti-coercion instrument to target U.S. service exports. The deal now puts those plans on hold, at least for now.