The United States and the European Union have reached a framework trade agreement that imposes a flat 15% U.S. tariff on the vast majority of European goods, halving the 30% levy President Donald Trump had threatened to activate on 1 August. The accord, announced after Trump met European Commission President Ursula von der Leyen at his Turnberry resort in Scotland, is intended to avert a trans-Atlantic trade war between partners that together generate nearly a third of global commerce. Alongside the tariff cap, the EU pledged to buy $750 billion worth of U.S. energy—mainly crude oil, liquefied natural gas and nuclear fuel—by 2028 and to channel a further $600 billion of investment into the American economy. Trump said European governments would also order unspecified “vast” quantities of U.S. military equipment, although that element remains undefined. The 15% duty will cover about 70% of EU exports to the United States, including automobiles, pharmaceuticals and semiconductors. Existing 50% tariffs on steel and aluminum stay in place, while both sides agreed to eliminate duties on a list of strategic goods such as aircraft and components, certain chemicals, some generic medicines, semiconductor manufacturing gear and selected agricultural products. Detailed schedules and quota rules are to be finalised and must secure approval from EU member states and lawmakers. Financial markets greeted the deal cautiously; U.S. equity futures and European stock benchmarks edged higher on the prospect of reduced trade uncertainty. Energy analysts, however, questioned the practicality of the EU’s $250 billion-per-year energy commitment, noting it would require redirecting the bulk of existing U.S. oil and LNG exports and expanding port and pipeline capacity on both sides of the Atlantic. Critics in France and Germany also warned the package risks locking Europe into fossil-fuel dependence and raising consumer costs. Officials on both sides said negotiations will continue in the coming weeks to convert the political framework into binding texts and to clarify sector-specific exemptions. Until then, companies remain braced for higher compliance costs and shifting supply chains even as the immediate threat of a spiralling tariff confrontation recedes.