President Donald Trump announced Sunday that the United States and European Union (EU) have reached a framework for a comprehensive trade agreement following intensive negotiations with European Commission President Ursula von der Leyen in Turnberry, Scotland.
The announcement came just days before a Friday deadline that would have triggered 30 percent tariffs on European imports. Under the framework, the EU has committed to purchasing $750 billion worth of American energy and investing an additional $600 billion in the United States beyond current levels.
The negotiations took place against a backdrop of escalating trade tensions, with Trump having previously set a July 9 deadline that went unmet. Trump previously warned that failure to reach an agreement would result in tariffs jumping from 10 percent to 30 percent on August 1, citing one of the “largest trade deficits” between the trading partners. During Sunday’s talks, Trump indicated that 15 percent represents the lowest across-the-board tariff rate the United States would accept for European Union goods.
The framework addresses two key components of the US-EU economic relationship. The $750 billion energy commitment positions the United States as a major supplier to European markets, while the additional $600 billion investment pledge could significantly boost American industrial capacity and job creation.
This is a breaking news story. Updates to follow.
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