A trade agreement was signed between the United States of America and the European Union (EU) on Sunday to impose a 15 percent tax on EU exports. This agreement was made to resolve the transatlantic customs duty dispute. Earlier, due to the customs dispute, there was a risk of a trade war between the US and the EU.

American President Donald Trump, at his own golf resort in Scotland, commented on the agreement as the biggest achievement after a high-level meeting with the President of the European Commission, Ursula von der Leyen. Leaders reached a deal about an hour before an Aug. 1 deadline to avoid a 30 percent U.S. tax on European goods .

'We've made a deal, it's good for everyone . "This is probably the biggest deal ever made in any area," Trump said. According to Trump, the basic tax of 15 percent will apply to Europe's important automobile sector, including pharmaceuticals and semiconductors. Trump said that as part of the deal, the 27-member EU agreed to buy "$750 billion worth of energy" from the United States and agreed to invest an additional $6 trillion.

Von der Leyen said "significant" purchases of US liquefied natural gas, oil and nuclear fuel would take place over three years as part of the bloc's efforts to diversify away from Russian sources . Von der Leyen, negotiating on behalf of the EU's 27 countries, was trying hard to save trade relations worth $19 trillion a year in goods and services. "It's a good deal," the EU chief told reporters, "it will bring stability, it's very important for our businesses on both sides of the Atlantic."

After Trump entered the White House last January for his second term, there was a lot of friction between the US and the EU on customs duties. Still, the US has imposed tariffs of 25 percent on cars from EU countries, 50 percent on steel and aluminum, and 10 percent on all goods. While Washington has threatened to increase it to 30 percent, the EU has been forced to negotiate with the US on customs duties. The EU was demanding tariff breaks for key industries from aircraft to alcohol, while France and Germany were already suffering from steep tariffs on cars and motorcycles.

"A 15 percent tax should not be underestimated, but it is the best we can get," von der Leyen said. The new tax will come into effect after EU member states ratify the deal with the US. German Chancellor Friedrich Merz immediately praised the deal, saying it prevented an "unnecessary increase in transatlantic trade relations". But German exporters are still less enthusiastic. The powerful BDI federation of industry groups said the deal would have "significantly negative consequences".

Ireland, one of the EU's top exporters to the United States, welcomed the deal, but its Department of Foreign Affairs and Trade said in a statement that it "regretted" the basic tax. The EU had been pushing for a deal on steel that would allow certain quotas to enter the US before tariffs are imposed. Trump rejected this, saying that steel would "remain as it is", but the EU chief later insisted that "tariffs will be cut and a quota system will be established" for steel.