Turnberry (Scotland) – There's finally a deal in the trade dispute between the EU and the US – but permanent tariffs are still coming to our economy!

Negotiators have reached an agreement in principle to defuse the tariff conflict that has been ongoing for months. US President Donald Trump announced this on Sunday after talks with EU Commission President Ursula von der Leyen.

Both sides have agreed on a tariff rate of 15 percent for imports of goods from the EU to the USA.

"We have reached an agreement. It is a good deal for everyone," Trump said on Sunday at his golf resort in the Scottish town of Turnberry.

Top economist and ifo President Prof. Clemens Fuest told BILD: “Germany can live with 15 percent.”

Shock tariffs on steel and aluminum remain

Steel and aluminum are not part of the US trade agreement with the European Union. US tariffs on these goods will remain at their current levels, US President Donald Trump said after the talks. US tariffs on steel and aluminum are currently at 50 percent.

Slight sigh of relief in the automotive industry

According to the agreement, tariffs of 15 percent will apply to other goods imports from the EU to the US. Trump recently threatened 25 percent tariffs on the automotive industry.

Fuest told BILD:"It is important that the 15 percent also applies to cars, so that the extra 25 percent tariff is eliminated."