The U.S. and European Union (EU) reached a framework trade agreement on July 27 that avert a more robust trade war with each other.

U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the trade agreement at Trump’s golf course in western Scotland, following an hour-long meeting that concluded months of negotiations.

The agreement sets a 15% U.S. import tariff on most EU goods — half of the initially proposed rate — avoiding a broader escalation in trade tensions between the two trading partners, who together represent nearly one-third of global trade.

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The tariff applies to automobiles and auto parts, pharmaceuticals and semiconductors. Tariffs on steel, aluminum and copper will remain unchanged, with the EU continuing to pay a 50% rate.

According to Trump, the agreement includes provisions for the EU to purchase $750 billion worth of U.S. energy over the coming years and investment commitments totaling $600 billion in the U.S. by 2028.

The agreement also includes provisions to eliminate EU tariffs on U.S. industrial goods, expanding market access for American producers and supporting increased exports across sectors such as agriculture, manufacturing and energy.

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Trump said the deal is intended to strengthen transatlantic economic ties and address concerns about trade imbalances affecting U.S. exporters.

To read more about the trade deal, see the White House’s Face Sheet here.