The United States and European Union have reached a major trade agreement, narrowly avoiding a full-blown trade war as President Trump imposed a 15% tariff on most European goods—down from a threatened 30%. While the deal brings short-term stability and cheers from investors, many European leaders and critics call it a capitulation, arguing that the EU accepted unfavorable terms under pressure. The agreement includes massive European purchases of U.S. energy and military equipment, and restores tariff exemptions for the aviation sector. Despite the relief at averting harsher tariffs, the deal has sparked political backlash in Europe, with some leaders denouncing it as 'submission' and warning it could weaken transatlantic alliances. The EU admits it cannot guarantee all promised investments, and is preparing potential retaliatory measures if the U.S. escalates further.
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