US President Donald Trump and EU chief Ursula von der Leyen confirm the deal after "tough negotiations" in Scotland.

EDINBURGH, Scotland (AP) — The United States and the European Union agreed on Sunday to a trade framework setting a 15% tariff on most goods, staving off — at least for now — far higher imports on both sides that might have sent shockwaves through economies around the globe.

The deal, which includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment, will bring welcome clarity for EU companies though many in Europe will see it as a poor outcome.

President Donald Trump announced the deal on Sunday in Scotland alongside European Commission President Ursula von der Leyen.

European Commission President Ursula von der Leyen and US President Donald Trump have struck a deal to settle a trade dispute over tariff hikes, EU sources said on Sunday. The agreement brings an end to months-long negotiations between Brussels and Washington.

Investors cautiously embraced news of a trade deal on Sunday between the U.S. and European Union that is expected to bring clarity for companies and some certainty to markets ahead of U.S. President Donald Trump's Friday tariffs deadline.

The US and European Union agreed to an understanding that will see the bloc face 15% tariffs on most of its exports, staving off a trade war that could have delivered a hammer blow to the global economy.

TURNBERRY, Scotland (Reuters) -U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment.