The United States and European Union have reached a major trade agreement, narrowly avoiding a damaging trade war that threatened to escalate tariffs on both sides. The deal, announced by President Trump and EU Commission President Ursula von der Leyen, sets a 15% tariff on most EU exports to the US, including automobiles and wine, down from the previously threatened 30%. In exchange, Europe has pledged to buy $750 billion in US energy and invest $600 billion in American industries. While the agreement is being touted as a significant win for Trump, it leaves some details unresolved and has sparked mixed reactions in Europe, where relief at averting disaster is tempered by concerns over higher costs for businesses and consumers. The deal also signals a shift in global trade dynamics, with the EU preparing for possible future disputes and the US setting a new standard for its trade negotiations.
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