The United States and the European Union have finalised a comprehensive trade deal that places a 15% tariff on most EU goods entering the US. US President Donald Trump and EU chief Ursula von der Leyen announced last night that they have reached a deal to end a transatlantic tariffs standoff and avert a full-blown trade war.

The agreement came as the clock ticked down on an August 1 deadline for the European Union to strike a deal with Washington—or face an across-the-board US levy of 30%. Trump told reporters the deal involved a baseline levy of 15% on EU exports to the United States—the same level secured by Japan. The US President also said the European Union has agreed to purchase 750 billion dollars worth of energy from the United States, as well as 600 billion dollars more in additional investments in the country.