The EU and the US reach an agreement to avoid Trump's tariff hikes before the deadline.

The United States and the European Union reached an agreement that will require the bloc to apply 15% tariffs on most of its exports, including automobiles, averting a trade war that could have severely affected the global economy.

The agreement comes less than a week before a Friday deadline for Trump's higher tariffs to take effect. In May, the president threatened to impose a 50% tariff on nearly all EU products, increasing pressure that accelerated negotiations, before eventually reducing it to 30%.

US President Donald Trump and European Commission President Ursula von der Leyen met at her Turnberry golf resort in western Scotland, UK, to try to finalize a deal.