TURNBURY, Scotland – U.S. President Donald Trump announced Sunday that the United States had reached a framework trade agreement with Europe, averting an escalating dispute between the two allies, which account for nearly a third of global trade.
The agreement, which includes a 15% tariff on European goods entering the United States and significant EU purchases of American energy and military equipment, should bring welcome clarity to EU companies.
But many in Europe will view the 15% base tariff as a poor outcome compared to the initial European ambition of a zero-for-zero tariff agreement, although it is better than the threatened 30% rate.
The announcement came after European Commission President Ursula von der Leyen traveled to Scotland for talks with US President Donald Trump to push forward the hard-fought agreement.
Trump, who seeks to reorganize the global economy and reduce the decades-old US trade deficit, has so far succeeded in reaching agreements with Britain, Japan, Indonesia, and Vietnam, although his administration has failed to fulfill its promise to conclude “90 deals in 90 days.”
Trump has periodically launched sharp attacks on the European Union, saying it was “formed to take advantage of the United States” on trade.
His main concern is the U.S. trade deficit with the European Union, which will reach $235 billion in 2024, according to U.S. Census Bureau data. The EU points to the U.S. surplus in services, which it says partially redresses the balance.
