
The United States of America and the European Union have reached a trade agreement.
The agreement was reached after US President Donald Trump's meetings with European Commission President Ursula von der Leyen.
Why are US-EU trade ties so important?
Goods and services exchanged between the United States and the European Union form one of the largest trade relationships in the world. They are each other's largest trading and investment partners.
Total trade in goods between the EU and the US reached about 975.9 billion in 2024. Together, they account for almost a third of global trade in goods and services.
Last year, the U.S. imported about $606 billion worth of goods from the EU and exported about $370 billion.
This imbalance, or trade deficit, is a sticking point for Donald Trump. He says that trade relations like this mean that the US is "losing".