US, EU Finalize Contentious Scotland Trade Agreement

The United States and European Union finalized a trade agreement in Scotland that imposes a 15% US tariff on most EU goods—including cars, pharmaceuticals, and industrial machinery—averting a previously threatened 30% tariff escalation. In return, the EU will purchase $750 billion in US energy and invest $600 billion in the US, while removing tariffs on American industrial goods for improved market access. The deal has sparked internal discord within the EU, with critics calling it a major concession compared to the more favorable terms achieved by the UK and Japan, and highlighting that key details are still unresolved. Brussels and Washington have also pledged to cooperate on addressing Chinese overcapacity in sectors such as steel. Steel and aluminum tariffs remain at 50%, and the agreement is seen as a shift toward higher trade barriers rather than further liberalization. European officials maintain they negotiated the best terms possible under the circumstances.