The US and the EU reached a framework trade deal on Sunday, avoiding escalating trade tensions between the two major economic blocs. The agreement imposes a 15% US import tariff on most EU goods.

The deal was finalized after European Commission President Ursula von der Leyen met with US President Donald Trump. Both leaders praised the agreement for its importance to global trade stability.

While the 15% baseline tariff applies across the board, steel and aluminum imports from the EU will continue to face a 50% tariff.

This outcome is a compromise for the EU, which initially sought a zero-tariff agreement but avoided Trump's previously threatened 30% rate.