Donald Trump has agreed to a new trade deal with the EU following a critical meeting with the European Commission President Ursula von der Leyen in Scotland.
Branded a ‘turning point’ in US-EU relations, the deal involves the latter purchasing $750 billion in US energy, including liquefied natural gas and nuclear fuel.
The move, it is hoped, will reduce the EU’s its dependence on Russian gas and oil – although critics say the bloc is merely swapping one dependency for another.
A further $600 billion worth of EU investment in the United States has also been agreed upon, strengthening economic and financial ties between the two blocs.
In return, Trump has reduced to the 30% tariffs on most EU exports to 15%, affecting key sectors such as automotive, semiconductors, and pharmaceuticals.
Crucially, 15% has been set as the limit, meaning Trump cannot threaten to increase them again.
Some products will have zero tariffs
In parallel, a zero-tariff regime has been agreed on strategic sectors such as aeronautics, certain chemical products, generic medicines, semiconductor equipment, some agricultural products and essential raw materials.
The agreement has avoided what many feared was developing into an imminent trade war, and brings more stability and predictability to transatlantic relations.
There may be challenges, however, such as the cost of energy imported from the US possibly costing more.
The deal also suggests a greater economic dependence on the US, which has proven an unreliable – and unpredictable – partner since Trump returned to office.
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