President Donald Trump and European Commission President Ursula von der Leyen announced Sunday a sweeping trade agreement between the United States and the European Union, just days before a major tariff deadline.

The deal includes a 15% tariff on most European goods entering the U.S., notably vehicles - lower than the previously threatened 30%, but significantly above the 10% rate the EU had hoped for.

In return, the EU pledged to purchase $750 billion worth of U.S. energy and direct $600 billion in new investments into American infrastructure, defense, and manufacturing sectors.

Trump stated that the EU also plans to buy "hundreds of billions of dollars" in U.S. military equipment, though specifics were not disclosed.

"It's a very powerful deal, it's the biggest of all the deals," Trump said alongside von der Leyen.

"It's a huge deal with tough negotiations," von der Leyen added.

While the timeline and mechanisms for investment remain unclear, the announcement marks a turning point after months of tense negotiations and looming retaliatory measures from Brussels.

Brussels had prepared countermeasures, including major tariffs on U.S. exports and activation of the EU's "Anti-Coercion Instrument," known as a "trade bazooka."

Ireland's government welcomed the agreement but warned of challenges:

"It brings clarity, but higher tariffs will make trade more expensive and more challenging," the Taoiseach's office said.

In 2024, the U.S.-EU trade relationship was valued at €1.68 trillion ($1.97 trillion). The EU maintained a surplus in goods but a deficit in services, leaving an overall trade surplus of about €50 billion with the U.S.

For the U.S. agricultural sector, this deal could open energy-linked trade routes and lock in higher production demand - though European tariffs on American exports may rise in parallel, potentially impacting soybeans, beef, and corn.