The United States and the European Union have reached a breakthrough trade agreement, bringing an end to months of escalating tensions between the two major economies. Following high-stakes discussions at President Donald Trump’s Turnberry golf resort in Scotland, both sides confirmed a new framework under which a 15% tariff will be imposed on EU goods entering the American market.

The move comes after President Trump had earlier threatened a more punitive 30% rate, set to come into effect later this week. European Commission President Ursula von der Leyen, who met President Trump in a closed-door session on Sunday, described the agreement as a “stabilising step” for transatlantic trade. “This deal rebalances our relationship and ensures mutual benefits,” she said at a joint press briefing. “President Trump is a tough negotiator, but also a dealmaker.”

The deal allows both parties to claim a measure of success. For the EU, the 15% rate, though higher than existing tariffs, is significantly less than what had been threatened. It matches the rate recently agreed between Washington and Tokyo but falls short of the 10% tariff negotiated by post-Brexit Britain. For the United States, the agreement is expected to generate an estimated $90 billion in tariff revenue based on last year’s trade volumes.

In addition, the EU committed to investing over $600 billion in the American economy over the next three years. This includes major purchases of US military equipment and energy resources, including liquified natural gas, oil, and nuclear fuels. Irish Prime Minister Micheál Martin warned that the new tariffs, although lower than feared, would nonetheless complicate trade for Irish exporters.

“This makes doing business more expensive and more challenging,” he said. German Chancellor Friedrich Merz also weighed in, noting that Germany, a major exporter to the US, stood to lose in the event of a trade war. “Predictable and stable trade relations are in everyone’s interest,” he wrote on X.

Credit: Independent News Pakistan (INP)