EU resigned to 15% US tariff

THE US and the EU clinched a trade agreement at the weekend that will see EU exports taxed at 15%, in a bid to resolve a transatlantic tariff standoff that threatened to explode into a full-blown trade war.

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US President Donald Trump emerged from a high-stakes meeting with European Commission President Ursula von der Leyen at his golf resort in Scotland, describing the deal as the “biggest-ever”.

The deal, which the leaders reached after an hour of talks, came as the clock ticked down on an August 1 deadline to avoid an across-the-board US levy of 30% on European goods.

“We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity,’ said Trump.

Trump said a baseline tariff of 15% would apply across the board, including for Europe’s crucial automobile sector, pharmaceuticals and semiconductors.

As part of the deal, Trump said the 27-nation EU bloc had agreed to purchase “$750 billion (R13 trillion) worth of energy” from the US, as well as make $600bn in additional investments.

Von der Leyen said the “significant” purchases of US liquefied natural gas, oil and nuclear fuels would come over three years, as part of the bloc’s bid to diversify away from Russian sources.

Negotiating on behalf of the EU’s 27 countries, von der Leyen had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.

“It's a good deal,” the EU chief told reporters.