EU and US Agree on Trade Deal, with 15% Tariffs for European Exports to America

• The United States and European Union have agreed on a trade deal, ending a months-long standoff between two of the world's biggest economic partners. After make-or-break negotiations between President Donald Trump and European Commission President Ursula von der Leyen in Scotland, the pair agreed to US tariff on all EU goods of 15%.
• That is half the 30% import tax rate Trump had threatened to implement starting on Friday. He said the 27-member bloc would open its markets to US exporters with zero per cent tariffs on certain products.
• Von der Leyen also hailed the deal, saying it would bring stability for both allies, who together account for almost a third of global trade. Sunday's agreement was announced after private talks between Trump and Von der Leyen at his Turnberry golf course in South Ayrshire.
• The commission has the mandate to negotiate trade deals for the entire bloc - but it still requires approval by EU member states, whose ambassadors will meet on Monday for a debrief from the commission.
• Trump said the EU would boost its investment in the US by US$600.0Bn (£446.0Bn), including American military equipment, and spend $750bn on energy. That investment over the next three years in American liquified natural gas, oil and nuclear fuels would, von der Leyen said, help reduce European reliance on Russian power sources.
• Some goods will not attract any tariffs, including aircraft and plane parts, certain chemicals and some agricultural products. A separate deal on semiconductors may be announced soon.
• One key area where a deal is yet to be struck is alcohol, with France and the Netherlands in particular seeking tariff exemptions for their respective wine and beer industries. However, a 50% US tariff Trump has implemented on steel and aluminium globally would stay in place, he said.

(Source: BBC)