Part of the agreement involves a commitment to buy American oil and gas. Over the course of the Russia-Ukraine war, now in its fourth year, most of the EU has slashed its dependence on unreliable energy supplies from Russia, but Hungary and Slovakia still have not.

The rate will apply in addition to individual “reciprocal” tariffs targeting countries with which the US runs a trade deficit.

The U.S. stock market has shown relief the tariff rates aren’t as high as Trump initially threatened in April and hope for a sense of stability going forward. Trump maintains the tariff revenues will whittle down the budget deficit and help whip up domestic factory jobs, all while playing down the risks of higher prices.

After the U.S. reached a trade deal with Europe, it looks like airlines and manufacturers will avoid tariffs on aircraft orders and parts.

The sharp increase in U.S. trade tariffs on the European Union will not trigger immediate sovereign rating cuts, but could compound existing pressures, Fitch and other agencies said on Tuesday, while Moody's warned of the effect on exporting firms.

US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world’s two largest economies, but US officials said that still remains an option for President Trump.

China and the U.S. have agreed to continue their tariff pauses on each other, according to China's top trade official

Natural resources that are not grown in the United States, including coffee and cocoa, could be exempt from import tariffs when trade deals with producing countries are reached, U.S. Commerce Secretary Howard Lutnick said on Tuesday.

The 15% tariff would be lower than previously threatened, but it would remain a high duty on America’s largest trading partner.