The European Union has agreed to accept a 15% tariff on the majority of its exports to the United States, heading off President Donald Trump’s earlier threat to impose duties of up to 30%. The accord, reached on 27 July and presented by European Commission President Ursula von der Leyen, also commits Brussels to purchase about $750 billion of U.S. energy over the next three years and to direct a further $600 billion of investment to the American market. EU negotiators described the compromise as the best available option to preserve access to their largest goods market, noting that sectors such as aerospace will avoid new duties altogether, while automotive and chemicals escape steeper increases. The deal leaves key items—including existing 50% levies on steel and aluminium and the treatment of wine, spirits and pharmaceuticals—subject to separate talks. Economists warn the concessions will still weigh on Europe’s already fragile outlook. Edmond de Rothschild Asset Management estimates the tariff package could shave almost 0.4 percentage point off EU growth over three years, and Allianz Trade forecasts about $50 billion in lost exports this year alone. Critics in Paris, Berlin and Budapest say the arrangement undercuts the bloc’s industrial-sovereignty agenda by steering capital and defence procurement toward the United States. Supporters counter that the agreement averts a damaging escalation, reduces some non-tariff barriers and brings the EU in line with trade terms recently accepted by Japan, the U.K. and South Korea. Further details are expected in a joint communiqué, but analysts caution that Europe’s dependence on U.S. markets and energy could deepen, complicating efforts to bolster domestic manufacturing and meet climate goals.