US and EU reach a trade deal that sets 15% tariff rate and pledges hundreds of billions in investments

president Donald Trump and European Commission President Ursula von der Lin met in Scotland on Sunday to settle the agreement.

Trump said the European Union will invest $ 600 billion in the United States and buy $ 750 billion of US energy, with “huge amounts” of American weapons as well in this mix. He also said that the European Union will drop the definitions of US imports to 0 %.

Von der Lin said that 15 % was “comprehensive”, but Trump later said it did not apply to medications and minerals.

“I think this mainly concludes the deal,” he told reporters. “It is the largest of all deals.”

An agreement with one of the largest trade partners in America removes a major source of uncertainty in the market and removes the threat of a harmful trade war.

Michael Brown, the chief research strategy in Pepston, said in note that European car makers are among the big winners of the deal where the definitions of cars will decrease to 15 % of the current 25 %, which carries a similar sculpture that Japan got last week. Defense and energy stocks in the United States will also gain.

“The stocks do not need a lot of excuse for gathering at the present time, and the agreement” The largest deal ever ” – Trump’s words, and not me – not only removes the risk of the left tail that the market was anxious, but also repeats that the direction of travel remains far from the pious speech, and towards the commercial deals that were made.”

With the heading to their meeting, Trump and Von der Lin said they had seen a 50-50 opportunity to reach a deal. Trump excluded medicines from any deal and said that the rate of tariffs on the European Union would not be less than 15 %.

The European Union is already facing a 50 % tariff on steel and aluminum. Without a deal by August 1, the European Union was appointed to hit with a “mutual” tariff by 30 %, up from 10 %.

Last week, Trump reached a trade with Japan, which set a 15 % average and included a pledge to Tokyo to invest $ 550 billion in the main American industrial sectors, with Trump directing money.

Treasury Secretary, Scott Besent, said that the offer of investment in Japan was a key to canceling a trade agreement, and suggested that other countries help obtain a similar rate, although Wall Street has expressed doubts that the money would be fulfilled completely.

In fact, Trump hinted that the European Union will have to “buy” a 30 % threatened tariff rate and referred to the Japan deal.

If a deal is not made with the United States, the European Union was already a retaliatory tariff of up to 30 % on more than $ 100 billion in American exports, such as planes, cars and borbon whiskey.

Meanwhile, other commercial partners in the United States are staring at the deadline on August 1, and Trade Minister Howard Lootnick said on Sunday that no other extensions would be given.

But the United States and China compare the tradition of trade by 90 days as conversations between the Chinese Deputy Prime Minister, who was scheduled to start on Monday in Stockholm. Without extension, the tariff stopped on August 12.