The United States and the European Union have reached a last-minute trade agreement that will impose a 15% tariff on EU goods entering the US, replacing the previously threatened 30% rate. The deal, reached just ahead of the August 1 deadline, was announced by President Donald Trump and European Commission President Ursula von der Leyen after a high-stakes meeting at Trump’s Turnberry golf resort in Scotland.

“It was a very interesting negotiation. I think it’s going to be great for both parties,” Trump said.

President Trump noted the long-standing friction in trade relations between the US and Europe, saying: “We’ve had a hard time with trade with Europe, a very hard time.” “I think the main sticking point is fairness.”

Under the deal, the US will impose a baseline 15% tariff on EU exports — the same level Japan recently agreed to — including autos, which were previously taxed at 25%.

“We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15 percent,” Trump confirmed.

As part of the agreement, the EU has committed to purchasing $750 billion worth of US energy and investing $600 billion more into the American economy.