By Auzinea Bacon, Alejandra Jaramillo, Elisabeth Buchwald, John Liu, CNN

(CNN) — President Donald Trump announced Sunday that the United States and the European Union reached a framework for a trade deal, ending a monthslong saga with America’s largest trading partner.

Trump announced a 15% levy on most imports from the 27-nation European Union, including automobiles, pharmaceuticals and semiconductors, after talks with European Commission President Ursula von der Leyen in Turnberry, Scotland.

Speaking alongside von der Leyen at his golf course on the western coast of Scotland, Trump said the EU agreed to purchase $750 billion worth of energy from the US, and invest $600 billion more in the US.

“All of the countries will be opened up to trade with the United States at zero tariffs, and they’re agreeing to purchase a vast amount of military equipment,” Trump added.

While specifics of the deal have not been disclosed, Trump touted the agreement with the bloc as “the biggest deal ever made.” Von der Leyen said the deal would bring “stability” and “predictability,” and other European leaders have largely welcomed the development.

Collectively, the EU and the US exchanged $975 billion worth of goods last year, according to US Commerce Department data. The trade deal, while far from final, lowers the risk of a transatlantic trade war that would have ramifications for the global economy.

Trump began talks with von der Leyen earlier Sunday as Friday’s deadline loomed to reach an agreement to avoid 30% tariffs on European imports. The European Union had sought to keep baseline tariffs at 10%, while Trump had said the United States could not go lower than a 15% across-the-board tariff rate for the bloc.

Von der Leyen acknowledged negotiations with Trump were tough: “I knew it at the beginning, and it was indeed very tough. But we came to a good conclusion for both sides.”

Germany’s Chancellor Friedrich Merz posted on X, saying European negotiators’ hard work had paid off. “A trade conflict has been averted that would have severely impacted the export-oriented German economy,” he said.

Italy’s Prime Minister Giorgia Meloni said it was “positive” that a trade deal has been struck between the EU and the US, but said she needed to see the details, Reuters reported.

The Irish Prime Minister, Taoiseach Micheál Martin, also welcomed the deal, saying it was “good for businesses, consumers and investors” on X. But he conceded that bilateral trade would still become “more challenging” with the now higher tariff.

The 15% tariffs on all goods include pharmaceuticals, the No. 1 ($155 billion) good the US imported from the European Union last year, according to US Commerce Department data. Trump had repeatedly suggested he would put a 200% tariff on pharmaceuticals that are manufactured outside the United States — the vast majority of US drugs — starting August 1.

Ireland, a member of the EU, is the top single foreign country supplying the United States with pharmaceuticals.

“Pharmaceuticals are very special. We can’t be in a position where we’re relying on other countries,” Trump said.

The framework comes after Trump previously issued a tariff letter to the EU, announcing duties on most EU goods would rise from the 10% universal baseline to 30% on August 1, as the US and European Union had one of the “largest trade deficits” and had failed to reach a deal by his previous July 9 deadline.

In April, EU goods briefly faced a 20% “reciprocal” tariff before Trump paused those levies. And in May, Trump, citing a lack of progress in trade talks, said he was prepared to slap a 50% tariff on EU goods on June 1. “I’m not looking for a deal,” he said at the time.

Deal or no deal deadline looming

Trump reaffirmed the Friday deadline for other trading partners and said steel and aluminum tariffs will remain at their current rates of 50%.

Sitting alongside Trump, Commerce Secretary Howard Lutnick said tariffs on semiconductors will be announced in two weeks. It’s unclear when those could take effect.

Lutnick had said in an interview on “Fox News Sunday” that there would be no further extensions or grace periods after August 1. But he raised the prospect of potentially some wiggle room, saying “big economies” can continue trade talks with the United States.

“August 1, the tariffs are set. They’ll go into place,” Lutnick said.

Some of the tariffs that Trump has threatened go as high as 50%. South Korea, a major supplier of electronics and other goods, faces the threat of 30% tariffs, while Brazil could face tariffs of 50%.

Meanwhile, the United States and China are nearing an August 12 deadline to reach a trade deal. The United States has been charging Chinese goods a tariff of around 50%, down from 145%, while China has been taxing American goods at a minimum of 10%, down from 125%.

Treasury Secretary Scott Bessent is expected to meet with Chinese negotiators this week in Stockholm for another round of trade talks, eyeing further extension of their trade truce reached in Geneva in May.

At the start of the meeting with von der Leyen on Sunday, Trump said the US is “very close to a deal with China.”

“We really sort of made a deal with China, but we’ll see how that goes,” he said.

Since Trump paused other “reciprocal” tariffs in April to provide more time to work on securing trade deals, only seven trade agreements have been announced, including the one with the EU on Sunday.

This story and headline have been updated with additional developments.

CNN’s Jonny Hallam contributed to this report.

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