The United States and the European Union recently came to an agreement on a 15% tariff for most EU exports, reports The Associated Press.
Following a meeting between President Donald Trump and European Commission chief Ursula von der Leyen at Trump’s Turnberry golf course in Scotland, the countries announced the agreement on Sunday.
The tariff will apply to most EU exports, including cars and semiconductors—though both sides also agreed on zero for zero tariffs on products including all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials. Von der Leyen added that they will work to add more products to this list.
Trump said that the EU agreed to buy approximately $750 billion worth of U.S. energy, to invest an additional $600 billion in the U.S., and to make a major military equipment purchase. Von der Leyen later clarified that the $750 billion in U.S. energy purchases would be distributed over the next three years.
Before the agreement is made official, the European Commission will need to present the deal to member states and EU lawmakers and receive their approval.
Though the U.S. and EU appeared close to closing a deal earlier this month, Trump responded with threats of a 30% tariff. The administration has maintained its deadline of Aug. 1 to impose the tariffs.
