The United States and the European Union reached a last-minute trade framework on Sunday that sets a 15% tariff ceiling on most goods traded between the two economic giants—averting a broader trade conflict that threatened to rattle global markets.

The agreement followed a brief but high-stakes meeting between President Donald Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry golf resort in Scotland. With a White House deadline looming to impose punitive tariffs on all 27 EU member states, the two sides announced the deal just in time.

“It was a very interesting negotiation,” Trump said. “I think it’s going to be great for both parties—a good deal for everybody, a giant deal with lots of countries.”

Von der Leyen echoed that sentiment, describing the pact as a stabilizing force for businesses. “It will bring stability, it will bring predictability—very important for our businesses on both sides of the Atlantic,” she said.

Key Provisions and Pending Details

The agreement establishes a 15% “across-the-board” tariff on most traded goods, including vehicles, semiconductors, and pharmaceuticals. However, both leaders acknowledged that many critical details still need to be finalized in the coming weeks.

Von der Leyen noted that some strategic products would be exempt from tariffs altogether, including aircraft and their components, key chemicals, semiconductor machinery, certain generic medicines, and select agricultural and raw materials. “15% is a clear ceiling,” she emphasized.

Trump said the EU has also committed to:

• Purchasing $750 billion worth of U.S. energy over the next three years, helping Europe reduce its reliance on Russian natural gas.
• Increasing investments in the U.S. by an additional $600 billion.
• Buying a “major” batch of U.S. military equipment.

The White House framed the deal as a breakthrough for American exporters, with Trump declaring the European market “open to all of the United States.”

Approval and Future Negotiations

While von der Leyen had authority to negotiate the framework on behalf of the European Commission, the deal must still be presented to EU member states and lawmakers for final approval.

At a separate press conference, von der Leyen cautioned that while the framework is established, “the details have to be sorted out,” adding that negotiations will continue in the coming weeks to finalize product lists and implementation timelines.

Trump had long decried the previous trade relationship with the EU as “one-sided” and “unfair to the United States.” On Sunday, he described von der Leyen as a “tough negotiator” but added, “fair.”

The deal marks another in a series of Trump-era trade frameworks that seek to rebalance global trade relationships. Previous agreements with Japan and the United Kingdom similarly involved sweeping announcements followed by prolonged follow-up talks.

While the full impact of the agreement remains to be seen, it appears to have temporarily deescalated tensions between two of the world’s largest trading partners. Whether it leads to long-term stability—or deeper disputes—will depend on what happens in the next phase of talks.