The United States and European Union have reached an agreement on a trade deal, says Donald Trump.
The announcement was made as the US president met European Commission chief Ursula von der Leyen at one of his golf resorts in Scotland.
Speaking after talks in Turnberry, Mr Trump told reporters it was the “biggest deal ever made” and will be “great for cars” as well as having a “big impact” on agriculture.
The US will impose 15% tariffs on most EU goods entering America, after Mr Trump had threatened a 30% levy.
President Donald Trump shakes hands with European Commission chief Ursula von der Leyen in Turnberry. Pic: Reuters
The deal includes $600bn (£446bn) of EU investments in the US, and the bloc will buy $750bn (£558bn) of US energy and also purchase American military equipment.
Mr Trump said: “I think it’s great that we made a deal today instead of playing games and maybe not making a deal at all.”
“I think it’s the biggest deal ever made.”
He said: “We are agreeing that the tariff… for automobiles and everything else will be a straight across tariff of 15%.” However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would stay in place.
Ms Von der Leyen said: “We have a trade deal between the two largest economies in the world and it’s a big deal, it’s a huge deal. It will bring stability, it will bring predictability, that’s very important for our businesses on both sides of the Atlantic.”
She said the agreement would include 15% tariffs “across the board”, and it would help rebalance trade between the two large trading partners.
She said the levy rate was the “best we could get” regarding the car sector.
But she added that there was “no decision” on the spirits sector, which was one of those areas where the details in the framework trade deal would have to be examined in the coming weeks.
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Mr Trump had earlier said the main sticking point was “fairness”, citing barriers to US exports of cars and agriculture.
He went into the talks demanding fairer trade with the 27-member bloc and threatening steep tariffs to achieve that, while insisting the US will not go below 15% import taxes.
For months, Mr Trump has threatened most of the world with large tariffs in the hope of shrinking major US trade deficits with many key trading partners, including the EU.
In case there was no deal and the US had imposed 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93bn (£81bn) of US goods.
Ahead of their meeting on Sunday, Ms Von der Leyen described Mr Trump as a “tough negotiator and dealmaker”.
The deal mirrors parts of the framework agreement the US clinched with Japan last week.
