US, EU Sign 15% Tariff Trade Deal, Avoid Global Shock

The United States and European Union have reached a trade agreement that imposes a 15% tariff on most EU exports to the U.S., a compromise that evades a threatened higher tariff but has been widely criticized in Europe for its imbalance. While U.S. President Donald Trump hailed the deal as a major victory that would enhance U.S. exports and manufacturing, European leaders expressed mixed reactions, acknowledging relief that a deeper trade war was avoided but warning that the deal favors the U.S. and may hamper European economic growth. The EU commits to purchasing $750 billion in U.S. energy and investing an additional $600 billion in the American economy, while facing a fourfold increase in tariffs compared to previous levels. Critics, including senior European lawmakers, argue the pact disproportionately burdens EU exporters while allowing the U.S. to maintain zero tariffs on its goods, and also raises concerns about increased investment in U.S. military technology. European Commission President Ursula von der Leyen described the deal as the best possible outcome under tough negotiations, emphasizing it provides stability and continued market access. Despite some sectors remaining exposed to steep tariffs, the agreement sets a framework to prevent further escalation and shapes future trade relations between the transatlantic partners.