The United States and the European Union have reached a trade deal, ending a month -long deadlock between the world’s two major economic partners.
After the make-or-brake talks between President Donald Trump in Scotland and European Commission Chairman Ursula von Der Leyen, the pair agreed to a blanket US tariff on all European Union goods of 15%. This is half a 30% import tax rate, Trump threatened to start on Friday.
Trump said that the 27 -member block would open its market for American exporters with zero percent tariff on certain products.
Von Der Leyen also said the deal, saying that it would bring stability for both colleagues, who eat almost one -third of global trade.
Trump has threatened tariffs against major American trade partners in a bid to restore the global economy and trim the US trade deficit.
Along with the European Union, he has also hit tariff agreements with UK, Japan, Indonesia and Vietnam, although he has not achieved his goal of “90 deals in 90 days”.
The Sunday deal was announced after a private conversation in his Turnberry Golf Course in South Irshire between Trump and Von Der Leyen.
Trump – who is on a five -day visit to Scotland – said after a brief meeting with the Chairman of the European Commission: “We have reached a deal. This is a good deal for everyone.”
“It’s going to bring us together,” he said.
Von Der Leyen saw it as a “heavy deal” even after “tough talks”.
As part of the agreement, Trump said that the European Union would promote its investment by $ 600BN (£ 446BN) in the US, purchasing hundreds of billions of billions of dollars of US military equipment and spending $ 750BN on energy.
Von Der Leyen said that American liquid will help in investing natural gas, oil and nuclear fuel, European dependence on Russian power sources.
“I would like to thank President Trump for personally for achieving this success for his personal commitment and his leadership,” he said.
“He is a difficult negotiator, but he is also a merchant.”
The US President also said that he has applied 50% tariffs on steel and aluminum globally.
Both sides can portray the agreement as a win.
For the European Union, the tariffs could be worse: this is not good as the UK’s 10% tariff rate, but Japan is similar to the 15% rate of interaction.
For the US, it is equal to about $ 90 billion tariffs in government coffeers, based on last year’s trade data, as well as in the US, now there is a investment of hundreds of billions of dollars.
Trade in goods between the European Union and the United States was around $ 975.9BN last year. Last year, the US imported about $ 606BN in goods from the European Union and exported about $ 370BN.
It is a sticky point for imbalance, or trade deficit, Trump. He says that such business relations mean that the US is “losing”.
If he chased through tariffs against Europe, products ranging from Spanish pharmaceuticals to Italian leather, German electronics and French cheese would have been implemented.
The European Union had said that the car was ready to retaliate with tariffs on American goods including parts, boeing planes and beef.
The British Prime Minister Kir Stmper planned his meeting with Trump at Turnberry on Monday.
Trump will be in Aberdeen on Tuesday, where his family has another golf course and one third is opening next month.
The President and his sons have planned to help cut the ribbon on the new Fairway.
