US and EU Agree to Preliminary Trade Deal, Avoiding Trade War

The United States and the European Union have reached a preliminary trade deal to avoid a trade war. The agreement includes a 15 percent tariff on most EU goods, including cars. The EU has committed to purchasing $750 billion of American energy over three years and increasing its investment in the U.S. by over $600 billion, including military equipment purchases. Tariffs will be eliminated on goods such as aircraft, certain chemicals, generic drugs, semiconductor equipment, and some agricultural products. However, the U.S. may maintain its 50 percent tariff on steel and aluminum globally, with potential for reduction through further negotiation. Major details still require finalization, but the framework is expected to significantly alter the trade relationship between the two economic powers.