EU and US announce trade deal: What you need to know

The EU will pay 15% tariffs and also buy hundreds of billions of dollars in energy products and military equipment from the US.

The United States and the European Union have reached a wide-ranging trade agreement, ending a months-long standoff and averting a full-blown trade war just days before President Donald Trump’s deadline to impose steep tariffs.

The EU will pay 15 percent tariffs on most goods, including cars. The tariff rate is half the 30 percent Trump had threatened to implement starting on Friday. Brussels also agreed on Sunday to spend hundreds of billions of dollars on US weaponry and energy products on top of existing expenditures.

Speaking to reporters at his Turnberry golf resort in Scotland, Trump hailed the agreement as the “biggest deal ever made”. “I think it’s going to be great for both parties. It’s going to bring us closer together,” he added.

European Commission President Ursula von der Leyen said the agreement would “bring stability” and “bring predictability that’s very important for our businesses on both sides of the Atlantic”.