US, EU agree trade deal ending months-long standoff

The United States and European Union have agreed a trade deal, ending a months-long standoff between two of the world's biggest economic partners.

After make-or-break negotiations between President Donald Trump and European Commission President Ursula von der Leyen in Scotland, the pair agreed a US tariff on all EU goods of 15%.

That is half the 30% import tax rate Trump had threatened to implement starting on Friday. He said the 27-member bloc would open its markets to US exporters with 0% tariffs on certain products.

Von der Leyen also hailed the deal, saying it would bring stability for both allies, who together account for almost a third of global trade.

Trump has wielded tariffs against major US trade partners in a bid to reorder the global economy and trim the American trade deficit.

As well as the EU, he has struck tariff agreements with the UK, Japan, Indonesia, the Philippines and Vietnam, although he has not achieved his goal of "90 deals in 90 days".

France's European Affairs Minister Benjamin Haddad reacted to the deal early on Monday, saying it had some merits - such as exemptions for some key French business sectors such as spirits - but was unbalanced.

Sunday's agreement was announced after private talks between Trump and Von der Leyen at his Turnberry golf course in South Ayrshire.

Trump - who is on a five-day visit to Scotland - said following their brief meeting: "We have reached a deal. It's a good deal for everybody."

"It's going to bring us closer together," he added.

Von der Leyen also hailed it as a "huge deal", after "tough negotiations".

The EU's top official described the deal as a "framework" agreement, with further technical details to be negotiated "over the next weeks".

The commission has the mandate to negotiate trade deals for the entire bloc - but it still requires approval by EU member states, whose ambassadors will meet on Monday for a debrief from the commission.

Trump said the EU would boost its investment in the US by $600bn (£446bn), including American military equipment, and spend $750bn on energy.

That investment over the next three years in American liquified natural gas, oil and nuclear fuels would, von der Leyen said, help reduce European reliance on Russian power sources.

Some goods will not attract any tariffs, including aircraft and plane parts, certain chemicals and some agricultural products. A separate deal on semiconductors may be announced soon.

One key area where a deal is yet to be struck is alcohol, with France and the Netherlands in particular seeking tariff exemptions for their respective wine and beer industries.