The US and EU have announced a trade deal that would set tariffs at 15% for European goods, including automobiles, averting the worst-case scenario.
"This is the biggest deal ever made," Trump said, lauding EU plans to dramatically increase its purchases of US energy and military equipment as part of the deal.
Trump said the tariff rate would apply to "automobiles and everything else" and added that the 50% tariff on steel and aluminum "stays the way it is."
The baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal.
Is the EU-US trade agreement fair?
DW Correspondent Birgit Maass said that many in the EU and critics of Donald Trump would say that US President Donald Trump has strong-armed the EU to get concessions, using the leverage of his country's resources when it comes to security policy.
"NATO and the US have been a big guarantor of European security. This obviously comes all in a mix. Europe needs the US not just for trade but also for the general security situation with a war in the continent of Europe, in Ukraine, and the threat that’s being posed by Russia." she said.
What does the trade deal mean for the EU?
The trade pact means the bloc would avoid the 30% tariffs that Trump had threatened on all goods from the EU on July 12.
But it marks a significant compromise, especially given that European Commission President Ursula von der Leyen offered a "zero-for-zero tariffs for industrial goods" when talks began.
Still, von der Leyen said they agreed "zero-for-zero tariffs on a number of strategic products" including aircraft and aircraft parts, some chemicals, and certain agricultural products.
She added that the framework trade deal did not contain any decision regarding the spirits sector.
The trade pact will need to be approved by all 27 member states.
German Chancellor Friedrich Merz welcomes EU-US trade pact
German Chancellor Friedrich Merz welcomed the trade agreement between the European Union and the US which will see a 15% tariff on EU goods entering the US.
"We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade," Merz said in a government statement issued on Sunday evening.
The no-deal scenario would have "hit the export-oriented German economy hard," according to Merz.
He added that this applied in particular to the automotive industry, where the current tariffs of 27.5% have been almost halved.
The US is Germany's main trading partner.
