The deal includes $600bn (£446bn) of EU investments in the US, and the bloc will buy $750bn (£558bn) of US energy and also purchase American military equipment.
Mr Trump said: “I think it’s great that we made a deal today instead of playing games and maybe not making a deal at all.”
He said: “We are agreeing that the tariff… for automobiles and everything else will be a straight across tariff of 15%.” However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would stay in place.
If a company isn’t going to make a profit selling to America, they aren’t going to sell it.
So the item the previously listed for $100 and made a $10 profit on, will now cost $115 for that same $10 profit. They won’t all of a sudden drop the price by $15 to keep the sale price at $100 and then take a $5 loss on each sale, they will simply stop selling the item or Americans will need to pay $115 for the item and the government gets $15 and the company still gets $10, but it’s still the Americans paying that $15 to the government, unless there is already a locally made item which sells for $105 then Americans will buy that instead and the European company can’t compete anymore and will stop selling their product and Americans have less choice in the stores.