President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping new trade deal that imposes a 15% tariff on most EU exports to the United States, averting a threatened 30% tariff and a potential transatlantic trade war. The agreement also includes EU commitments to purchase hundreds of billions of dollars in U.S. energy and military goods, though experts question the feasibility of these promises. European leaders, especially in France and Germany, have criticized the deal as a capitulation, warning it will raise prices, slow economic growth, and disproportionately hurt key EU industries like autos and pharmaceuticals. While markets initially cheered the avoidance of a full-blown trade war, many analysts and officials see the deal as lopsided in favor of the U.S. and a sign of growing American leverage over Europe. The deal leaves some issues unresolved, such as tariffs on pharmaceuticals and steel, and has fueled debate over the EU's future trade strategy.
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