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The United States and Europe have reached a preliminary trade agreement that promises to reshape transatlantic economic ties.
U.S. President Donald Trump made the announcement on the negotiated “landmark trade deal with the European Union” from Scotland July 27.
As part of the new trade framework, tariffs on many American exports to Europe will be eliminated. In return, the U.S. will impose a 15 percent duty on most European goods entering the country starting next month — half of what was originally proposed by the Trump administration.
In addition, European nations will purchase $750 billion worth of American energy products and invest an additional $600 billion in new capital across the U.S. economy. The agreement also includes expanded purchases of U.S. military equipment.
Further details of the agreement have not been released, but talks are ongoing about the specifics, say officials, who say that a final joint statement is expected to be finalized and released by August 1. The deal reportedly will offer some protection for critical industries, including cars and pharmaceuticals.