Trump Strikes High-Stakes US-EU Trade Deal, Averting Tariff War but Raising Costs

The United States and European Union have reached a major trade agreement just days before a deadline that could have triggered a damaging trade war.

The deal, announced by President Trump and EU Commission President Ursula von der Leyen, sets a 15% tariff on most EU goods entering the US—lower than the threatened 30% but still much higher than previous rates. In exchange, the EU has pledged to buy $750 billion in US energy and invest $600 billion in American projects. While the agreement brings relief to markets and avoids immediate escalation, European leaders and critics argue the deal is unbalanced and will raise costs for companies and consumers.

The outcome is seen as a political win for Trump, but leaves lingering questions and some discontent within Europe.