The United States and European Union have reached a high-stakes trade agreement just before a major tariff deadline, setting a 15% baseline tariff on EU goods entering the US. This deal averts a potentially damaging trade war and brings some clarity and predictability for businesses, but European exporters will now face significantly higher tariffs than before. The agreement includes major EU commitments to purchase US energy and invest in the American economy, but leaves steep tariffs on steel and aluminum in place. While the deal is seen as a win for President Trump, European leaders and business groups have expressed concern over the increased costs and the bloc's limited leverage in negotiations. Markets responded positively to the news, but questions remain about the long-term impact on transatlantic trade and global supply chains.
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