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Trump, Starmer to Meet in Scotland After Major US-EU Trade Deal
US President Donald Trump and European Commission President Ursula von der Leyen struck a new trade deal late Sunday during a surprise meeting at Trump’s Turnberry resort in Scotland. The agreement imposes a 15% blanket tariff on most EU goods entering the US far less than the 30% tariff Trump had threatened to apply starting Friday. Notably, several key sectors such as aircraft, specific chemicals, and some agricultural items are exempt from the tariffs.
The new agreement is seen as a major compromise and aims to stabilize transatlantic economic ties. European Commission chief Von der Leyen welcomed the deal, calling it a path to "stability" between allies. Trump said the deal “brings us closer together.”
Markets reacted positively on Monday morning, as investors breathed a sigh of relief over avoided trade escalation. However, steel and aluminium tariffs remain at 50%, and automobiles, pharmaceuticals, and semiconductors are included in the 15% tariff list despite earlier suggestions from Trump that pharma might be exempt.
There is still disagreement within the EU, especially on alcohol tariffs, with France and the Netherlands lobbying for wine and beer exemptions. Meanwhile, Hungarian PM Viktor Orban criticized the deal harshly, calling it worse than the US-UK deal and mocking Von der Leyen as "featherweight" in negotiations with Trump.
Reforms to EU agriculture and auto standards are part of the agreement, allowing more US goods, including farm produce and vehicles, to access European markets with fewer restrictions.
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