The pact comes less than a week before a Friday deadline for President Donald Trump's higher tariffs to take effect on August 1. The president in May threatened to impose a 50% duty on nearly all EU goods, adding pressure that accelerated negotiations, before lowering that to 30%.

Trump made the announcement at Trump Turnberry, his seaside golf resort in western Scotland, after meeting with European Commission President Ursula von der Leyen, who leads the EU's executive body.

Trump said the U.S. would set a baseline tariff of 15% for European goods, including automobiles. He said steel and aluminum tariffs, which are currently at 50%, would remain unchanged. He added that the EU had agreed as part of the deal to buy $750 billion worth of energy products from the US, and the EU would agree to invest $600 billion more than previously in the US, although similar to the $550BN "investment" promised by Japan, this is unlikely to every materialize.

Adding to the list of ludicrously big numbers disclosed (or as the case may be undisclosed) today, Trump also said that the EU would buy "a vast amount" of military equipment, and while he explained that "we don't know what number is" but added that the US makes "the best military equipment in the world so you have to do that."

To summarize, the US has agreed:

To purchase $750 billion in energy

Invest $600 billion in the US on top of existing investments

Open up countries' markets to trade with US at zero tariffs

Purchase "vast amounts" of military equipment

Officials report that both pharma and autos will be hit at 15% (Trump implied that's not the case so there appears to be some continued friction and/or negotiations), while von der Leyen says there will be zero-for-zero tariffs on aircraft components and some chemicals. To get the tariff down from the 30% that had been threatened, the EU has agreed to buy a total $750 bn of US energy and increase its investment into the US by $600 bn. Note that it was Trump's stance prior to the Liberation Day that the EU could get a deal by buying US energy. The EU will also purchase US military/defence equipment, as well as US LNG.