The deal includes $600bn (£446bn) of EU investments in the US, and the bloc will buy $750bn (£558bn) of US energy and also purchase American military equipment.
Mr Trump said: “I think it’s great that we made a deal today instead of playing games and maybe not making a deal at all.”
He said: “We are agreeing that the tariff… for automobiles and everything else will be a straight across tariff of 15%.” However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would stay in place.
Trump made a similar deal with Japan, but this raises eyebrows among economists and analysts. Because neither Japan nor the EU will invest, but rather private companies there are expected to do so. It is to be seen whether they really do it.