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After keeping Donald Trump happy with a pledge to up defence spending at NATO’s summit, Europe is now bracing for a key decision from the US president on the future of American forces on the continent.Washington is currently conducting a review of its military deployments worldwide — set to be unveiled in coming months — and the expectation is it will lead to drawdowns in Europe.That prospect is fraying the nerves of US allies, especially as fears swirl that Russia could look to attack a NATO country within the next few years if the war in Ukraine dies down. However, the alliance is basking in Trump’s newfound goodwill following its June summit in The Hague, and his officials are making encouraging noises that Europe will not be left in the lurch.”We’ve agreed to no surprises and no gaps in the strategic framework of Europe,” said Matthew Whitaker, US ambassador to NATO, adding he expected the review to come out in “late summer, early fall”.”I have daily conversations with our allies about the process,” he said.While successive US governments have mulled scaling back in Europe to focus more on China, Trump has insisted more forcefully than his predecessors that the continent should handle its own defence.”There’s every reason to expect a withdrawal from Europe,” said Marta Mucznik from the International Crisis Group. “The question is not whether it’s going to happen, but how fast.”When Trump returned to office in January many felt he was about to blow a hole in the seven-decade-old alliance.But the vibe in NATO circles is now far more upbeat than those desperate days.”There’s a sanguine mood, a lot of guesswork, but the early signals are quite positive,” one senior European diplomat told AFP, talking as others on condition of anonymity.  “Certainly no panic or doom and gloom.”- ‘Inevitable’ -The Pentagon says there are nearly 85,000 US military personnel in Europe — a number that has fluctuated between 75,000 and 105,000 since Russia’s 2022 invasion of Ukraine.”I think it is inevitable that they pull out some of their forces,” a second European diplomat told AFP. “But I don’t expect this to be like a dramatic overhaul. I think it’s going to be gradual. I think it’s going to be based on consultations.”Trump’s first target is likely to be the troops left over from a surge ordered by his predecessor Joe Biden after Moscow’s tanks rolled into Ukraine.Officials say relocating the rump of that 20,000-strong deployment would not hurt NATO’s deterrence too much — but alarm bells would ring if Trump looked to cut too deep into personnel numbers or close key bases.The issue is not just troop numbers — the US has capabilities such as air defences, long-range missiles and satellite surveillance that allies would struggle to replace in the short-term.”The kinds of defence investments by Europe that are being made coming out of The Hague summit may only be felt in real capability terms over many years,” said Ian Lesser from the German Marshall Fund think tank.”So the question of timing really does matter.”- ‘Inopportune moment’ -Washington’s desire to pull back from Europe may be tempered by Trump now taking a tougher line with Russia — and Moscow’s reluctance to bow to his demands to end the Ukraine war.”It seems an inopportune moment to send signals of weakness and reductions in the American security presence in Europe,” Lesser said.He also pointed to Trump’s struggles during his first term to pull troops out of Germany — the potential bill for relocating them along with political resistance in Washington scuppering the plan. While European diplomats are feeling more confident than before about the troop review, they admit nothing can be certain with the mercurial US president. Other issues such as Washington’s trade negotiations with the EU could rock transatlantic ties in the meantime and upend the good vibes.”It seems positive for now,” said a third European diplomat. “But what if we are all wrong and a force decrease will start in 2026. To be honest, there isn’t much to go on at this stage.”

Top economic officials from the United States and China are set to renew negotiations Monday — with an extension of lower tariff levels on the cards — as President Donald Trump’s trade policy enters a critical week.Talks between the world’s top two economies are slated to happen over two days in the Swedish capital Stockholm, and they come as other countries are also rushing to finalise deals with Washington.For dozens of trading partners, failing to strike an agreement in the coming days means they could face significant tariff hikes on exports to the United States come Friday, August 1.The steeper rates, threatened against partners like Brazil and India, would raise the duties their products face from a “baseline” of 10 percent now to levels up to 50 percent.Tariffs imposed by the Trump administration have already effectively raised duties on US imports to levels not seen since the 1930s, according to data from The Budget Lab research centre at Yale University.For now, all eyes are on discussions between Washington and Beijing as a delegation including US Treasury Secretary Scott Bessent meets a Chinese team led by Vice Premier He Lifeng in Sweden.While both countries in April imposed tariffs on each other’s products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 percent and China’s countermeasures slashed to 10 percent.But the 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12.Since the Geneva meeting, the two sides have convened in London to iron out disagreements.- China progress? -“There seems to have been a fairly significant shift in (US) administration thinking on China since particularly the London talks,” said Emily Benson, head of strategy at Minerva Technology Futures.”The mood now is much more focused on what’s possible to achieve, on warming relations where possible and restraining any factors that could increase tensions,” she told AFP.Talks with China have not produced a deal but Benson said both countries have made progress, with certain rare earth and semiconductor flows restarting.”Secretary Bessent has also signalled that he thinks a concrete outcome will be to delay the 90-day tariff pause,” she said. “That’s also promising, because it indicates that something potentially more substantive is on the horizon.”The South China Morning Post, citing sources on both sides, reported Sunday that Washington and Beijing are expected to extend their tariff pause by another 90 days.Trump has announced pacts so far with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines, although details have been sparse.An extension of the US-China deal to keep tariffs at reduced levels “would show that both sides see value in continuing talks”, said Thibault Denamiel, a fellow at the Centre for Strategic and International Studies.US-China Business Council President Sean Stein said the market is not anticipating a detailed readout from Stockholm: “What’s more important is the atmosphere coming out.””The business community is optimistic that the two presidents will meet later this year, hopefully in Beijing,” he told AFP. “It’s clear that on both sides, the final decision-maker is going to be the president.”Sweden’s Prime Minister Ulf Kristersson said both countries’ willingness to meet was a “positive development”. – Far from ideal -For others, the prospect of higher US tariffs and few details from fresh trade deals mark “a far cry from the ideal scenario”, said Denamiel.But they show some progress, particularly with partners Washington has signalled are on its priority list like the EU, Japan, the Philippines and South Korea.The EU unveiled a pact with Washington on Sunday while Seoul is rushing to strike an agreement, after Japan and the Philippines already reached the outlines of deals.Breakthroughs have been patchy since Washington promised a flurry of agreements after unveiling, and then swiftly postponing, tariff hikes targeting dozens of economies in April.Denamiel warned of overlooking countries that fall outside Washington’s priority list.Solid partnerships are needed, he said, if Washington wants to diversify supply chains, enforce advanced technology controls, and tackle excess Chinese capacity.

US tariff negotiations with key trading partners have shifted into high gear as economies race to avoid steeper duties before an August 1 deadline.Many of these tariff hikes were part of a package first announced in April, under which dozens of economies were due to face higher levies — up from a 10 percent level — over their trade surpluses with the United States.The twice-postponed deadline for duties to take effect is now Friday, August 1.But Washington has expanded its group of targets coming up against these tariffs, while announcing agreements with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines.A deal with the European Union unveiled on Sunday sees a 15 percent tariff imposed on European exports to the United States, down from the 30 percent that Trump earlier threatened.Where do other US trade talks stand?- South Korea: Heightened pressure -Seoul is racing to reach a deal with Washington, as Tokyo’s success in landing an agreement has “amped up the pressure for South Korea,” a government source told AFP.Local media reported that Seoul was preparing to propose more than $100 billion in investment as part of a broader agreement, with expected participation by major firms such as Samsung and Hyundai Motor. The South Korean government did not confirm this.But South Korean officials have outlined proposals to deepen collaboration in sectors like shipbuilding, semiconductors and batteries.National Security Advisor Wi Sung-lak has told reporters that the two countries are in “the final and most crucial phase of negotiations” to avert Trump’s proposed 25 percent duty.- India: Cautious optimism -Indian Commerce Minister Piyush Goyal told Bloomberg Television Thursday that he was optimistic his country could reach an agreement with the United States to avert Washington’s 26 percent tariff threat.Goyal insisted there were not any sticking points in the US-India relationship or in trade talks, and clarified that immigration rules —- including those around H-1B visas for skilled workers — had not come up in negotiations.Despite Goyal’s remarks, local media reported the prospects of an interim deal before August 1 had dimmed.- Taiwan: Working hard -Taiwanese Premier Cho Jung-tai said Thursday that officials are “working hard” on negotiations, amid worries that an unfavorable tariff level could hit the self-ruled island’s economy.Vice President Hsiao Bi-khim said Taipei’s negotiating team was “working almost 24 hours a day to achieve trade balance and Taiwan’s industrial interests, and even to further deepen cooperation.”- Canada, Mexico: Deal unclear -Although Canada and Mexico were spared from Trump’s “reciprocal” tariffs announced in April, goods from both countries entering the United States generally face a separate 25 percent duty if they fall outside a North American trade pact.This figure stands to jump to 30 percent for Mexico come August 1, while the level for Canada was set at 35 percent.Mexican President Claudia Sheinbaum said her administration was “doing everything” possible to avert the duties and that she would speak with Trump if necessary to try to reach a pact.Trump told reporters Friday there was no deal with Canada so far.- Brazil: Political nature -Brazil is girding for a virtual trade embargo on its planes, grains and other goods if Trump’s threatened 50 percent tariff on its exports takes effect on August 1.The United States runs a trade surplus with Latin America’s biggest economy, which was not originally expected to face steeper tariffs under Trump’s “reciprocal” duties plan.Trump has not attempted to hide the political motivation in targeting Brazil, citing a judicial “witch hunt” against his right-wing ally, former president Jair Bolsonaro, when he unveiled the tariff rate.The political nature of the spat makes a last-minute deal appear less likely.burs-jug-bys/sst

Dozens of economies including India, Canada and Mexico face threats of higher tariffs Friday if they fail to strike deals with Washington.Here is a summary of duties President Donald Trump has introduced in his second term as he pressures allies and competitors alike to reshape US trade relationships.- Global tariffs -US “reciprocal” tariffs — imposed under legally contentious emergency powers — are due to jump from 10 percent to various steeper levels for a list of dozens of economies come August 1, including South Korea, India and Taiwan.The hikes were to take effect July 9 but Trump postponed them days before imposition, marking a second delay since their shock unveiling in April.A 10 percent “baseline” levy on most partners, which Trump imposed in April, remains in place.He has also issued letters dictating tariff rates above 10 percent for individual countries, including Brazil, which has a trade deficit with the United States and was not on the initial list of higher “reciprocal” rates.Several economies — the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines — have struck initial tariff deals with Washington, while China managed to temporarily lower tit-for-tat duties.Certain products like pharmaceuticals, semiconductors and lumber are excluded from Trump’s “reciprocal” tariffs, but may face separate action under different authorities.This has been the case for steel, aluminum, and soon copper. Gold and silver, alongside energy commodities, are also exempted.Excluded too are Mexico and Canada, hit with a different set of tariffs, and countries like Russia and North Korea as they already face sanctions.- Canada, Mexico -Canadian and Mexican products were hit by 25 percent US tariffs shortly after Trump returned to office, with a lower rate for Canadian energy. Trump targeted both neighbors over illegal immigration and fentanyl trafficking, also invoking emergency powers.But trade negotiations have been bumpy. This month, Trump said Canadian goods will face a higher 35 percent duty from August 1, and Mexican goods will see a 30 percent level.Products entering the United States under the USMCA North American free trade pact, covering large swaths of goods, are expected to remain exempt — with Canadian energy resources and potash, used as fertilizer, to still face lower rates.- China focus -Trump has also taken special aim at China. The world’s two biggest economies engaged in an escalating tariffs war this year before their temporary pullback.The countries imposed triple-digit duties on each other at one point, a level described as a trade embargo.After high level talks, Washington lowered its levies on Chinese goods to 30 percent and Beijing slashed its own to 10 percent.This pause is set to expire August 12, and officials will meet for further talks on Monday and Tuesday in the Swedish capital Stockholm.The US level is higher as it includes a 20 percent tariff over China’s alleged role in the global fentanyl trade.Beyond expansive tariffs on Chinese products, Trump ordered the closure of a duty-free exemption for low-value parcels from the country. This adds to the cost of importing items like clothing and small electronics.- Autos, metals -Trump has targeted individual business sectors too, under more conventional national security grounds, imposing a 25 percent levy on steel and aluminum imports which he later doubled to 50 percent.The president has unveiled plans for a 50 percent tariff on copper imports starting August 1 as well and rolled out a 25 percent tariff on imported autos, although those entering under the USMCA can qualify for a lower rate.Trump’s auto tariffs impact vehicle parts too, but new rules ensure automakers paying vehicle tariffs will not also be charged for certain other duties.He has ongoing investigations into imports of lumber, semiconductors, pharmaceuticals and critical minerals that could trigger further duties.- Legal challenges -Several legal challenges have been filed against the tariffs Trump invoked citing emergencies.The US Court of International Trade ruled in May that the president had overstepped his authority, but a federal appeals court has allowed the duties to remain while it considers the case.If these tariffs are ultimately ruled illegal, companies could possibly seek reimbursements.

Godzilla has morphed over the years, but one constant is the devotion of its fans, who celebrated the Japanese monster’s 70th anniversary at the pop culture convention Comic-Con.The Japanese studio Toho, which created Godzilla, maintains a calendar of events to celebrate the beast often called the king of monsters, and Comic-Con is on the agenda.Godzilla was born on November 3, 1954 with the launch of the first movie about it, directed by Ishiro Honda. “I am a very big fan of Godzilla,” said Angela Hill, a teacher who traveled from Arizona to take part in Comic-Con, which this year featured events and displays celebrating Godzilla.One of the world’s largest celebrations of pop culture, Comic-Con brings together 130,000 people, many of whom come dressed as wizards, princesses or characters from movies, games or TV series.As the story of Godzilla goes, a prehistoric amphibious beast is awakened and mutated by nuclear bomb testing in the Pacific. It emerges from the sea and attacks Japan in a rage, symbolizing the deadly power of nukes.”I think because he came from such a historic event — like, a lot of other monsters are just interesting creatures, but they don’t hold the grief of a nation,” Hill said, referring to the US nuclear bomb attacks against Hiroshima and Nagasaki in World War II.At the pop culture watering hole in San Diego, people lined up to shoot pictures and video with an image of Godzilla, which was also the theme of a panel discussion on Friday that featured Shinji Higuchi, who co-directed a reboot in 2016 called “Shin Godzilla.”The movie franchise includes nearly 40 films and has spawned hundreds of animated productions about the monster as well as TV series and graphic work.- ‘Rooting for him’ – On Saturday the writers Ed Godziszewski and Steve Ryfle signed autographs of their book “Godzilla: The First 70 Years,” which sold out at Comic-Con. “It’s a rich history,” Ryfle told AFP.”This is the longest running feature film franchise in cinematic history that’s focused on a single, continuous character. It’s been around longer than James Bond.”He said the key to its longevity is that Godzilla has evolved over time but stayed faithful to its origins.”Godzilla has been serious, it’s been scary, it’s been heroic, it’s been funny. But at the same time this is a movie character that’s rooted in something that’s very real,” Ryfle said.”And that’s the trauma that Japan experienced, both during World War II, and also the trauma of the aftermath of World War II, the aftermath of Hiroshima and Nagasaki,” he added.He said Honda, who directed the first Godzilla movie, was a veteran who used the film to send a message against war and in particular against nuclear weapons.Michelle Pena, a Godzilla fan who waited in line to get the autograph of the two writers, said part of the monster’s charm is how it has changed over the years.”Good, bad, hero, anti-hero, you know. And I like that,” she said.”He’s not, like, lovable,” she added.”He’s a big dinosaur-looking thing, you know. He’s scary. But, like, you really, really find yourself rooting for him.”

Comic-Con fans pulled out their lightsabers Sunday to welcome “Star Wars” creator George Lucas to the prominent pop culture convention for the very first time.Attendees lined up for hours to grab a seat inside the 6,500-person capacity venue in San Diego, California to see the legendary filmmaker behind the “Indiana Jones” franchise speak at the event on its final day.Comic-Con, which draws some 130,000 attendees, has become an important platform for movie studios and their stars to showcase the latest film and television offerings, especially those with a genre fan base.”We’ve been waiting five decades for this!” said panel moderator Queen Latifah, who oversaw the discussion by Lucas and other filmmakers.Instead of discussing his film works, however, Lucas graced the convention to preview the Lucas Museum of Narrative Art — opening in Los Angeles in 2026 — which the director co-founded with his wife, businesswoman Mellody Hobson.”I’ve been collecting art since I was in college,” Lucas, 81, told the crowd, adding that he has amassed tens of thousands of pieces in his collection.”I’ve been doing this for 50 years now, and then it occurred to me that what am I going to do with it all because I, I refuse to sell it.”I could never do that, it’s just, it’s not what I think art is — I think it’s more about an emotional connection,” the director said.In his description of the museum, Lucas said the institution will feature a blend of works.They include illustrations by Normal Rockwell, Jessie Willcox Smith and N.C. Wyeth; artworks by Frida Kahlo, Jacob Lawrence, Charles White and Robert Colescott; and pieces by cartoonists and artists like Winsor McCay, Frank Frazetta and Jack Kirby.”This is sort of a temple to the people’s art,” he said in summation.The museum, housed in a sleek, curved building, will also feature items from Lucas’s films and other exclusive pieces.For the “Star Wars” mastermind, the museum aims to be a tribute to the importance of narrative art.”When you’re born, the baseline is fear. And as you go through life, you’re curious about things, but you’re especially curious about things you don’t understand, and therefore that’s a threat to you.”And as a result, you make up stories to make it feel good,” he continued.”Science fiction is a myth… but we’ve made it real because of science fiction books and art.”- ‘A critical moment’ -Among the other members of the panel were Oscar-winning director Guillermo del Toro and production designer Doug Chiang, who shaped the aesthetic of the “Star Wars” universe for decades.”What’s remarkable about George is that he leads from the heart, and this museum is him,” Chiang said. Del Toro, who will release his latest film “Frankenstein” in November, said many of the museum’s pieces will celebrate freedom of speech.”We are in a critical moment in which one of the things they like to disappear is the past, you know, and this is memorializing a popular, vociferous, expressive and eloquent moment in our visual past that belongs to all of us,” Del Toro said. The fantasy filmmaker also described comics as a medium with “a lot of social conscience” and joked that comic artists “were the first one to punch a Nazi” in their works.”What a panel!” said attendee Jesse Goldwater, who traveled to San Diego from Los Angeles. “They are the embodiment of Comic-Con itself, without them Comic-Con wouldn’t exist.”

The United States and European Union on Sunday clinched what President Donald Trump described as the “biggest-ever” deal to resolve a transatlantic tariff stand-off that threatened to explode into a full-blown trade war.Trump emerged from a high-stakes meeting with European Commission President Ursula von der Leyen at his golf resort in Scotland to announce that a baseline tariff of 15 percent would be levied on EU exports to the US.The deal, which the leaders struck in around an hour, came as the clock ticked down on an August 1 deadline to avoid an across-the-board US levy of 30 percent on European goods.”We’ve reached a deal. It’s a good deal for everybody. This is probably the biggest deal ever reached in any capacity,” said Trump.Trump said the 15-percent tariff would apply across the board, including for Europe’s crucial automobile sector, pharmaceuticals and semiconductors.As part of the deal, Trump said the 27-nation EU bloc had agreed to purchase “$750 billion worth of energy” from the United States, as well as make $600 billion in additional investments.Von der Leyen said the “significant” purchases of US liquefied natural gas, oil and nuclear fuels would come over three years, as part of the bloc’s bid to diversify away from Russian sources.Negotiating on behalf of the EU’s 27 countries, von der Leyen had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.”It’s a good deal,” the EU chief told reporters.”It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic,” she said.She said bilateral tariff exemptions had been agreed on a number of “strategic products,” notably aircraft, certain chemicals, some agricultural products and critical raw materials.Von der Leyen said the EU still hoped to secure further so-called “zero-for-zero” agreements, notably for alcohol, which she hoped to be “sorted out” in coming days.Trump also said EU countries — which recently pledged to ramp up their defence spending within NATO — would be purchasing “hundreds of billions of dollars worth of military equipment.”- ‘Best we could get’ -The EU has been hit by multiple waves of tariffs since Trump reclaimed the White House.It is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatened to hike to 30 percent in a no-deal scenario.The bloc had been pushing hard for tariff carve-outs for critical industries from aircraft to spirits, and its auto industry, crucial for France and Germany, is already reeling from the levies imposed so far.”Fifteen percent is not to be underestimated, but it is the best we could get,” acknowledged von der Leyen.Any deal will need to be approved by EU member states — whose ambassadors, on a visit to Greenland, were updated by the commission Sunday morning. They were set to meet again after the deal struck in Scotland.German Chancellor Friedrich Merz rapidly hailed the deal, saying it avoided “needless escalation in transatlantic trade relations”.But German exporters were less enthusiastic. The powerful BDI federation of industrial groups said the accord would have “considerable negative repercussions” while the country’s VCI chemical trade association said the accord left rates “too high”. The EU had pushed for a compromise on steel that could allow a certain quota into the United States before tariffs would apply.Trump appeared to rule that out, saying steel was “staying the way it is”, but the EU chief insisted later that “tariffs will be cut and a quota system will be put in place” for steel.- ‘The big one’ -While 15 percent is much higher than pre-existing US tariffs on European goods, which average around 4.8 percent, it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent.Had the talks failed, EU states had greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Trump has embarked on a campaign to reshape US trade with the world, and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by August 1.Asked what the next deal would be, Trump replied: “This was the big one. This is the biggest of them all.”burs-gv/jj

“The Fantastic Four: First Steps,” Disney’s hotly anticipated reboot of the Marvel Comics superhero franchise, conquered the North American weekend box office, earning $118 million and sidelining “Superman,” industry estimates showed Sunday.”Fantastic Four” — starring actor-of-the-moment Pedro Pascal, Vanessa Kirby, Emmy winner Ebon Moss-Bachrach and Joseph Quinn (“Stranger Things’) — tells the story of a team of heroes trying to save a retro-futuristic world from the evil Galactus.”This is an outstanding opening,” said David A. Gross of Franchise Entertainment Research. “‘Fantastic Four’ was a modest and struggling superhero series; it just caught up with the biggest and the best.””Superman,” the latest big-budget action film featuring the iconic superhero from Warner Bros. and DC Studios, slipped to second place at $24.9 million, Exhibitor Relations said.That puts the global take of the film, starring David Corenswet as the Man of Steel, over the $500 million mark.”Jurassic World: Rebirth” — the latest installment in the blockbuster dinosaur saga — finished in third place at $13 million. Its worldwide total stands at $672.5 million.The Universal film, starring Scarlett Johansson, Jonathan Bailey and Mahershala Ali, takes viewers to an abandoned island research facility, where secrets — and genetically mutated dinosaurs — are lurking. “F1: The Movie,” the Apple and Warner Bros. flick starring Brad Pitt as a washed-up Formula One driver who gets one last shot at redemption, moved up to fourth place at $6.2 million.”Smurfs,” the latest film featuring the adorable blue creatures and starring Rihanna as Smurfette, slipped to fifth place in only its second week in theaters with $5.4 million in North American ticket sales.”The box office is on an excellent run that started two weeks ago,” Gross said.”These are not the good old days, but ‘Fantastic Four’ and ‘Superman’ are performing extremely well. Superheroes are showing some swagger, and it’s good news for the industry.”Rounding out the top 10 were:”I Know What You Did Last Summer” ($5.1 million)”How to Train Your Dragon” ($2.8 million)”Eddington” ($1.7 million)”Saiyaara” ($1.3 million)”Oh, Hi!” ($1.1 million)

EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a “good deal”.The stakes were high with a looming August 1 deadline and $1.9 trillion transatlantic trading relationship on the line.Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent — but the deal will not satisfy everyone.Here is what we know so far:- What did EU, US agree? -Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods — the same level secured by Japan this month — with bilateral tariff exemptions on some products.The deal will bring relief for the bloc’s auto sector, employing around 13 million people — and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent.”Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent,” said Jacob Funk Kirkegaard of the Peterson Institute For International Economics.A 15-percent levy will remain “costly” for German automakers, “but it is manageable”, said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute.While 15 percent is much higher than pre-existing US tariffs on European goods — averaging 4.8 percent — it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April.The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States — split equally over three years — to replace Russian energy sources.And it will pour $600 billion more in additional investments in the United States.Trump said EU countries — which recently pledged to ramp up their defence spending within NATO — would be purchasing “hundreds of billions of dollars’ worth of military equipment”.- Are there exemptions? -Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals — a critical export for Ireland, which the bloc has sought to protect.Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs.Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said.The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump.”Between us, tariffs will be cut and a quota system will be put in place,” she said.It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism.- What happens next? -The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission.And there are still technical talks to come, since the agreement needs to be fully fleshed out.Von der Leyen described the deal as a “framework” agreement. “Details have to be sorted out, and that will happen over the next weeks,” she said.In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively.”This is something which has to be sorted out in the next days,” von der Leyen said.

US President Donald Trump and EU chief Ursula von der Leyen Sunday announced they had reached a deal to end a transatlantic tariffs standoff and avert a full-blown trade war.The agreement came as the clock ticked down on an August 1 deadline for the European Union to strike a deal with Washington — or face an across-the-board US levy of 30 percent.”We have reached a deal. It’s a good deal for everybody,” Trump told reporters following a high-stakes meeting with von der Leyen at his golf resort in Turnberry, Scotland.Trump told reporters the deal involved a baseline levy of 15 percent on EU exports to the United States — the same level secured by Japan — including for the bloc’s crucial auto sector, which is currently being taxed at 25 percent.”We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15 percent,” Trump said.He also said the bloc had agreed to purchase “$750 billion worth of energy” from the United States, as well as $600 billion more in additional investments in the country.Negotiating on behalf of the EU’s 27 countries, von der Leyen’s European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services.”It’s a good deal,” the EU chief told reporters, sitting alongside Trump following their hour-long talks.”It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic,” she said.- No carve-outs -The EU has been hit by multiple waves of tariffs since Trump reclaimed the White House. It is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario.Brussels has been focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy — with retaliation held out as a last resort.But the deal as outlined by Trump appeared to fall short of EU expectations.The bloc had been pushing hard for tariff carve-outs for critical industries from aircraft to spirits, and its auto industry, crucial for France and Germany, is already reeling from the levies imposed so far.Any deal will also need to be approved by EU member states — whose ambassadors, on a visit to Greenland, were updated by the commission Sunday morning. They were set to meet again after the deal struck in Scotland.Trump said pharmaceuticals — a key export for Ireland, which the bloc has lobbied to shield — “won’t be part of” any deal.”We have to have them built, made in the United States,” the president said. This month, Trump suggested the possibility of a 200-percent tariff on drugs imported into the United States, which would deal a crushing blow to the sector in Europe.The EU had also hoped for a compromise on steel that could allow a certain quota into the United States before tariffs would apply, but Trump ruled that out, saying steel was “staying the way it is”.- Auto sector -While 15 percent would be much higher than pre-existing US tariffs on European goods, which average around 4.8 percent, it would mirror the status quo, with companies currently facing an additional flat rate of 10 percent.Had the talks failed, EU states had greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels was also drawing up a list of US services to potentially target.Beyond that, countries including France say Brussels should not be afraid to deploy a so-called trade “bazooka” — EU legislation designed to counter coercion that can involve restricting access to its market and public contracts.Trump has embarked on a campaign to reshape US trade with the world, and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by August 1.US Commerce Secretary Howard Lutnick had said Sunday the August 1 deadline was firm and there will be “no extensions, no more grace periods”.