US President Donald Trump has signed a trade deal with the European Union in Scotland after talks with European Commission President Ursula von der Leyen, the BBC reports.

European Commission President Ursula von der Leyen confirmed after the signing that the United States would impose a general 15 percent tariff on European products. The agreement also includes billions of dollars in investment and energy purchases that Brussels has pledged.

Trump had previously threatened a 30 percent tariff on EU exports to the United States, which would have come into effect on August 1. Europe had hoped that the EU could reach a similar agreement to the one reached between the United States and Japan earlier this week. This would have meant that most of the bloc's products would face an average tariff of only 15 percent in America - the solution ultimately chosen by the parties based on the above. However, steel exports will still be subject to a 50 percent tariff, which will be a serious setback for the sector. Trump also said that pharmaceutical products are not part of the agreement and could still be subject to punitive tariffs.

According to the Guardian, von der Leyen called the deal a “big, huge deal” that would bring “stability” and “predictability.” She added: “The two biggest economies need to have good trading relations.” Trump said: “It solves a lot of things and it was a great decision.” The deal was struck after a 40-minute meeting at Trump’s golf course in Scotland, where the president is on a four-day private visit.