Market relief as the United States and European Union avert a trade war.
Financial markets around the world welcomed a framework trade agreement on Monday between the United States and the European Union with a 15 percent U.S. tariff on most EU goods and billions of dollars of European investment.
U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the agreement on Sunday at Trump’s luxury golf course in Scotland following months of difficult negotiations.Why It Matters
The deal averts a devastating trade war between the two economies, which represent the world’s largest trade volume, encompassing hundreds of millions of people and trillions of dollars in commerce.
Trump had this month threatened to impose a 30 percent tariff on goods from the E.U., which would have meant American consumers facing higher prices on everything from French cheese to German electronics and Spanish pharmaceuticals.
The EU had prepared retaliatory tariffs on hundreds of American products, including beef, auto parts, beer and Boeing airplanes, which could have sent shock waves through global economies.What To Know
The deal provides clarity for companies after months of uncertainty, and global markets breathed a sigh of relief as they opened on Monday, with stocks rising and the euro firmer.
