The European Union and the United States have struck a sweeping trade agreement stabilising tariffs at a single 15 per cent rate for the vast majority of EU exports to the US, European Commission President Ursula von der Leyen announced on Sunday. The deal, aimed at providing predictability and boosting competitiveness across both sides of the Atlantic, covering key sectors such as automobiles, semiconductors, and pharmaceuticals. It also introduces zero-for-zero tariffs on a range of strategic goods, including all aircraft and components, selected chemicals, agricultural products, and critical raw materials. "This is a deal between the two largest economies in the world," von der Leyen said, highlighting the EU-US annual trade volume of $1.7 trillion and shared market of 800 million people. The deal also addresses steel and aluminium by introducing a quota-based system and reducing tariffs, part of a joint effort to counter global overcapacity and ensure fair competition. Additionally, the EU will ramp up purchases of US energy, including LNG, crude oil, and nuclear fuels, as part of efforts to cut dependence on Russian supplies and strengthen energy security. The agreement provides a framework for further tariff reductions, closer regulatory cooperation, and deeper coordination on economic security, including technology and AI. "US AI chips will help power our AI gigafactories and help the US to maintain their technological edge," von der Leyen said. European companies are expected to benefit from immediate tariff relief, while US firms gain expanded access to the EU's single market of 450 million consumers. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
