U.S.-E.U. Agree 15% Tariff Deal Amid $600B Investment Exchange

President Donald Trump announced a major trade agreement with the European Union, which establishes a 15% tariff on most European exports to the U.S., while the EU maintains import taxes on U.S. goods mostly below 2%. Trump hailed the deal as the "biggest trade deal in history," emphasizing benefits such as increased U.S. energy, infrastructure, and defense investments from the EU, totaling hundreds of billions of dollars. However, the deal has been met with mixed reactions in Europe, where leaders like France's Prime Minister Francois Bayrou view it as a humiliating concession, noting the tariffs disproportionately impact small European exporters with thin profit margins. European Commission President Ursula von der Leyen described the agreement as bringing much-needed stability and predictability to transatlantic trade relations. Critics and economists warn the deal could lead to higher prices for consumers and inflict significant challenges on European businesses, while some U.S. political figures highlight the deal as a crucial political victory for Trump amid other controversies. Overall, the agreement avoids a potential trade war but underscores shifting power dynamics and contentious negotiations between the U.S. and EU.