US-EU Agreement on 15% Tariffs: Trade War Averted

An agreement between the United States and the European Union has averted a full-blown trade war. The agreement stipulates a base tariff of 15% on most European products imported into the US, significantly higher than the 1.2% before the Trump presidency.

Tensions peaked in late May when Trump announced 50% tariffs. The President of the Commission, Ursula von der Leyen, intervened, leading to a continuation of talks and ultimately an agreement.

"We did it," Trump said. "It will have a good result." Von der Leyen said a balance had been struck that would allow trade on both sides of the Atlantic.

Markets reacted with cautious optimism.