The EU and the US have reached a framework trade agreement that sets a blanket 15% tariff on goods traded between them, ending a months-long stand-off.

Single 15% tariff rate applies across most sectors
0% for 0% tariffs on a number of products, including all aircraft and parts, semiconductor equipment, certain chemicals, certain generics, certain agriculture products, natural resources and critical raw materials and more
work to add more products to list still to be done
agreement averts the 30% tariff previously threatened by the US administration.
EU concessions:
- It agreed to not impose retaliatory tariffs.
- It pledged $600 billion in investment in the US, though the timeline and specifics are undefined.

The EU entered talks seeking a better deal than the 10% tariff the UK accepted in May. After US–Japan talks resulted in a 15% baseline, the EU followed suit. EU officials acknowledged the limited leverage they had compared to the US.

—

Trump met with European Commission President Ursula von der Leyen in Scotland.

Trump:

“This is the biggest one of them all”
EU will agree to purchase $750 billion of energy
EU will invest $600 billion more than planned in the U.S.
tariff rate applying to imports from the EU would be 15%

Von der Leyen:

15% would be a ceiling rate
the same rate applying to cars, pharmaceuticals and semiconductors
tariff treatment for alcoholic beverages has still to be worked out
Europe would replace Russian gas with purchases of energy from the U.S. with purchases of $250 billion per year for the rest of Trump’s term

EUR/USD has been marked higher in early FX dealings: