EU Deal with Europe is 'biggest deal ever made' says Trump

President Donald Trump and European Commission President Ursula von der Leyen shake hands (AAP)

President Donald Trump and European Commission President Ursula von der Leyen shake hands Source: AAP / Jacquelyn Martin/AP

The United States and European Union have reached a trade deal that will see the EU face 15 per cent tariffs on most of its exports to America. The deal prevents a Trans-Atlantic trade war that could have had a huge impact on the global economy. Announcing it at his Scottish golf resort, Donald Trump described it in glowing terms but experts say Europe is likely to take a hit.



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TRANSCRIPT

On this trip the President's golfing time has been the priority, with Donald Trump hitting the links before trade talks.
Mr Trump has often claimed the European Union was formed to 'screw America on trade'; it wasn't, but it meant European Commission president Ursula von der Leyen [[lion]] had to tread carefully as she sought to avoid the 30% tariffs the President had promised to levy at months end if a deal wasn't done.
VON DER LEYEN: "Our staff have done some of the heavy lifting, but now it's on us and you are known as a tough negotiator and dealmaker."

TRUMP: "But fair...That's less important."VON DER LEYEN: "If we are successful I think it would be the biggest deal each of us has ever struck."
The clubhouse negotiations took just 40 minutes.
"I'm going to let you say it, but I think it's the biggest deal ever made. Thank you very much. Congratulations."
The US and EU account for almost 44 per cent of global GDP.
The deal will see a baseline rate of 15 per cent on goods made in the EU, although a 50% tariff will remain on European steel.
Both the UK - which recently announced a trade deal with Washington - and Australia face a 10% tariff on most items.

Ursula von der Leyen appeared resigned to the deal for Europe.
"15% is not to be underestimated, but it is the best we could get."
Economists like Carsten, the Global Head of Macro for ING Research, aren't entirely convinced.

"When you look at the economics and when you look where we sat at the start of the year, namely with hardly any tariffs, the European Union will clearly lose from this deal."
And some European leaders, like Italian Prime Minister Giorgia Meloni, are reserving judgement.
"I consider it positive that there is an agreement, but if I don't see the details, I'm not able to judge it properly."
President Trump is denying he'd rushed the deal to distract from the Epstein Files saga, which has seen pressure on his administration continue to intensify over its handling of the files.

"Oh you've got to be kidding with that. No. It had nothing to do with it."
His negotiators will now look to take another swing at a deal with China, amid reports the trade truce with Beijing will be extended by another 90 days.
Security remains tight around the Turnberry golf course after a small group of pro-Trump protestors got closer than anyone else has, warning the President not to trust his next guest, British Prime Minister Keir Starmer.

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