US President Donald Trump and European Commission President Ursula von der Leyen announced that they had reached an agreement to end the transatlantic trade dispute and prevent a full-scale trade war.

The agreement was reached as the clock ticked down to the August 1 deadline for the EU to reach an agreement with Washington—or face a blanket 30% tariff.

"We have reached an agreement. It's good for everyone," Trump said after meeting with von der Leyen at his golf resort in Turnberry, Scotland.

Von der Leyen also described it as a "huge agreement" reached after "difficult negotiations."

Trump said the agreement includes a 15% base tariff on EU exports to the US – the same level as agreed with Japan – including the bloc's key automotive sector, which is currently subject to a 25% tariff, AFP reported.

"We agree that the tariff on cars and everything else will be 15%," he said.

The US president also said that the bloc had agreed to purchase "$750 billion worth of energy" from the US, as well as an additional $600 billion worth of investments in the country.

Negotiating on behalf of the 27 EU countries, von der Leyen's European Commission fought hard to save trade relations worth $1.9 trillion a year in goods and services.

"This is a good deal. It will bring stability. It will bring predictability. This is very important for our businesses on both sides of the Atlantic," von der Leyen said. 

Brussels and Washington also agreed on a bilateral exemption from tariffs on key goods, including aircraft.

Von der Leyen said the products include certain chemicals, semiconductor equipment, some agricultural products, and critical raw materials.

The European Commission president also announced that the bloc would purchase "significant" amounts of energy from the US as part of the transatlantic trade agreement, replacing Russian sources.

"Purchasing energy products from the US will diversify our sources of supply and contribute to Europe's energy security. We will replace Russian gas and oil with significant purchases of liquefied natural gas, oil, and nuclear fuels from the US," she said.

Von der Leyen said the purchases would amount to approximately $750 billion, spread evenly over three years.

"We want to completely get rid of Russian fossil fuels," the president emphasized. She added that it is preferable to buy "more affordable and better" liquefied natural gas from the US. | BGNES