Overview

• The 15 percent tariff on European Union goods takes effect August 1 after President Trump and EU Commission President Ursula von der Leyen agreed to scale back threats of higher levies.
• The deal covers key sectors such as automobiles, wines, champagne and spirits, raising the prospect of price increases for luxury European brands in U.S. markets.
• In exchange for the uniform tariff, the EU pledged to boost purchases of U.S. petroleum and increase investment in American defense equipment.
• Major European stock indices closed lower after initial optimism gave way to concerns over the levy’s impact on transatlantic trade.
• Mexican President Claudia Sheinbaum is leading high-level talks in Washington to avert similar duties on non-T-MEC goods and has denied any linkage to security or political concessions.