The United States and European Union have struck a major trade deal that imposes a 15% baseline tariff on most EU goods entering the US, narrowly avoiding a full-blown trade war. While the agreement averts even harsher tariffs previously threatened by President Trump, many European leaders and industries are criticizing the deal as lopsided and damaging, particularly for sectors like pharmaceuticals and autos. The EU also pledged to buy hundreds of billions of dollars in US energy and military equipment, a promise experts say is unrealistic. The deal has triggered political backlash in Europe, with some leaders calling it a 'submission' to US demands, and left many questions unresolved about future trade relations and retaliatory measures. Investors initially cheered the deal for providing short-term stability, but uncertainty remains over its long-term impact on prices, industries, and transatlantic relations.
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