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1. The US and EU have struck a tariff deal that will avert a transatlantic trade war between the two sides but still impose American tariffs of 15 per cent on most imports from the bloc. The agreement was struck following a meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen at his Turnberry golf resort in Scotland. The deal marks a victory for Trump, who has spent months forcing America’s trading partners into bruising negotiations by threatening steep tariffs, although the terms are in line with what Brussels had told EU member states to prepare for. European stocks were poised to open higher on Monday, with the Euro Stoxx 50 futures index up 1 per cent. The euro strengthened 0.1 per cent against the dollar. (Source: ft.com)
2. The trade agreement appears to contain three main elements. The first is a 15% tariff on most European exports to America, including, importantly, cars. The second is a list of goods that will face zero tariffs, from aircraft and chipmaking equipment to some chemicals and raw materials. And the third is a promise by the EU to buy more American fuel and AI chips, and to invest $600 billion in America. The biggest concession is the (EU’s) acceptance of a 15% tariff, which is more than nine times higher than the rate in place before Mr Trump returned to office. But the worst-case scenarios were so bad that Europe’s trade negotiators gave up on returning to anything close to those halcyon days. (Source: economist.com)
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