What happened
President Donald Trump and European Commission President Ursula von der Leyen Sunday struck a last-minute deal in Scotland to avert a major transatlantic trade war.
After months of tense talks, both sides agreed to a 15% U.S. import tariff on most EU goods — half the previously threatened rate. The EU will also spend $750 billion on U.S. energy products and invest a further $600 billion in the American economy over three years.
Who said what
"It solves a lot of stuff," Trump said, describing the agreement as "really the biggest trading partnership in the world." Von der Leyen admitted that the talks were "tough," but said both sides worked hard to "come to a common position." EU Trade Commissioner Maros Sefcovic said that Trump was a “very tough negotiator."
The agreement stabilizes the "biggest and deepest commercial and investment relationship the global economy knows," said Jorn Fleck, the senior director of the Atlantic Council's Europe Center, per CNN. But it "doesn't enhance trade," said economist Joe Brusuelas at consulting firm RSM. "You're going to pay more for your European imports."
What next?
Details of the deal "remain murky," said CNN. Neither party published the text of the agreement and "they appeared to have different interpretations of some of the details," said The Wall Street Journal. Still, markets are expected to respond positively to the announcement.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
5 crime-ridden cartoons about National Guard deployment in DCCartoons Artists take on the crime of littering, the real criminals in DC, and more
-
Trump and Modi: the end of a beautiful friendship?In the Spotlight Harsh US tariffs designed to wrest concessions from Delhi have been condemned as 'a new form of imperialism'
-
The Strait of Messina: a bridge too far?Talking Point Giorgia Meloni's government wants to build the world's longest suspension bridge, fulfilling the ancient Roman vision of connecting Sicily to the Italian mainland
-
Will Ukraine trade territory for peace?TODAY'S BIG QUESTION Kyiv’s defences are wearing thin but a land swap is constitutionally impossible and crosses Zelenskyy's red lines
-
Russia tries Ukraine land grab before Trump summitSpeed Read The incursion may be part of Putin's efforts to boost his bargaining position
-
US, China extend trade war truce for 90 daysSpeed Read The triple-digit tariff threat is postponed for another three months
-
Europe counters Putin ahead of Trump summitSpeed Read President Trump will meet with Russian President Vladimir Putin in Alaska this week for Ukraine peace talks
-
Is Trump's new peacemaking model working in DR Congo?Talking Point Truce brokered by the US president in June is holding, but foundations of a long-term peace have let to be laid
-
Israeli security cabinet OKs Gaza City takeoverSpeed Read Netanyahu approved a proposal for Israeli Defense Forces to take over the largest population center in the Gaza Strip
-
Who wins from a Trump-Putin meeting?Today's Big Question Trump might get the leaders together for a photo op but brokering a peace deal won’t be easy
-
Thailand, Cambodia agree to ceasefire in border fightSpeed Read At least 38 people were killed and more than 300,000 displaced in the recent violence
