Trump strikes a deal with the EU on tariffs

• The US and EU agreed to a trade deal on Sunday.
• The deal sets a 15% tariff on most European goods imported to the US.
• The EU will invest $600 billion in the US in addition to existing investments.

The US and the EU reached a trade deal on Sunday after negotiations in Scotland between President Donald Trump and European Commission President Ursula von der Leyen.

The deal sets 15% tariffs on most European goods imported to the United States, a significant reduction from the 30% Trump had threatened earlier, but more than the 10% the EU originally sought. In return, Trump said the EU would ramp up investments in the United States.

"The European Union is going to agree to purchase from the United States $750 billion worth of energy," Trump told reporters. "They are going to agree to invest into the United States $600 billion more than they're investing already."

The EU also agreed to purchase a "vast amount" of military equipment from the US.

"I think it's the biggest deal ever made," Trump said.

There are some exceptions to the 15% tariffs, including steel, which Trump said would remain at the 50% he earlier set for all countries worldwide.

The agreement comes days before August 1, when the Trump administration's tariffs will go into effect for numerous countries, some of which could face levies as high as 50%.

Commerce Secretary Howard Lutnick said Sunday that there would be no more extensions and that tariffs would go into effect on August 1 as planned.

"No extensions. No more grace periods," Lutnick told Fox News.