The European Union and the United States have struck a trade deal, described as "the biggest ever made" by Donald Trump.
European Commission chief Ursula von der Leyen said the agreement, signed by her and the US president at his Trump Turnberry golf course in Scotland on Sunday, was "important for our businesses on both sides of the Atlantic", and offered "stability" and "predictability".
However, it has drawn a decidedly mixed reaction from European leaders.
Why do some countries welcome the announcement, while others don't? And what could the terms of the deal mean for Australia's hopes of avoiding Mr Trump's tariffs?
Here is what we know.
What is the EU-US deal?
Almost all EU goods entering the US will be subject to a 15 per cent baseline tariff, including cars, which were facing a 27.5 per cent levy, as well as semiconductors and pharmaceuticals.
The 15 per cent tariff is the maximum tariff and is not added to any existing rates.
The US and EU will also have zero-for-zero tariffs on all aircraft and their components, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials.
More products are expected to be added.
Meanwhile, the EU has agreed to buy $US750 billion ($1.148 trillion) worth of US energy over the next three years and invest $US600 billion more than it already is in America, as well as make a major purchase of military equipment.
It is unclear if alcohol will be included in that list.
Who welcomes the deal and who doesn't?
As the ABC reported previously, German Chancellor Friedrich Merz welcomed the trade deal, which he said avoided "needless escalation in transatlantic trade relations".
"We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade," he said in a statement released soon after the deal was announced.
But the German leader later said the automotive sector could experience "substantial damage" from US tariffs on cars.
Spanish Prime Minister Pedro Sanchez said he backed the trade deal with the US but "without any enthusiasm".
"I value the constructive and negotiating attitude of the president of the European Commission," Mr Sanchez told reporters at a news conference.
"In any case, I support this trade agreement, but I do so without any enthusiasm."
Irish Prime Minister Micheál Martin expressed mixed feelings about the deal, welcoming the fact that "punitively high tariffs" were avoided.
"But 'higher tariffs than there have been' will make transatlantic trade 'more expensive and more challenging'," he added.
Responding to the trade agreement, French Prime Minister Francois Bayrou wrote on X: "It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resolves to submission."
Why are some European leaders unhappy?
Anand Menon, who is the director of British-based think tank UK in a Changing Europe, said many leaders were voicing frustration because the deal leaves the EU "worse off" than before Mr Trump's "liberation day" tariffs were imposed earlier this year.
Compared to the UK, the EU also appeared to get a less favourable deal, which would impact car makers and other key industries based in Europe.
Ireland, which has become a base for huge American pharmaceutical firms due to its low corporate taxes, is also economically exposed.
"Lots of businesses, those who export to the United States, are not going to be happy because of course it’s going to make us less competitive against US rivals," he said.
"I think they were hoping for a bigger reduction in tariffs on automobiles," he said of Germany's automotive sector.
"It will make them less competitive against US rivals."
Professor Menon said many European leaders were happy to pass blame to the EU's leadership for the deal, "whilst allowing the EU to do the deal".
"There's a kind of 'having your cake and eating it' thing about national politicians [in Europe]," he said.
What happens next?
HSBC global chief economist Janet Henry told the ABC the EU-US trade deal wasn't as bad as what had been feared when there was discussion of a 20 per cent tariff, but she saw uncertainty.
"We still don't have the fine detail of this trade deal — nothing is written," Ms Henry said.
"This trade deal has been put together very, very swiftly.
"But these are still pretty hefty tariffs. We've certainly got a lot of uncertainty regarding the all-important sectoral tariffs," she added.
Ms Henry said the 15 per cent tariffs were not good news for the US consumer or European exporters at this stage.
Barclays bank meanwhile said the agreed-upon tariffs were "a better than-worst-case tariff outcome" that left major European manufacturers vulnerable, while Germany's car manufacturers estimated they could lose billions of euros annually from the deal.
And Professor Menon warned the deal could cause political ramifications, particularly for Ms von der Leyen.
He added that it would take some time for the details of the US-EU deal to become clear.
"A lot can change during the period when these things get negotiated, there's a lot of scope for tensions between the EU and the US to break out.
"While this a start, it is certainly not the end of this saga."
What about Australia?
While Australia has not copped nearly as much scrutiny from the US president as Europe, the Trump administration has expressed grievances with our Pharmaceutical Benefits Scheme and federal laws on US technology giants.
Professor Menon said the contrast between the EU deal, and a much more favourable deal struck between the UK and US, showed the importance of fostering strong diplomatic relations with Mr Trump.
"The fact is, Donald Trump seems to have a good relationship with Keir Starmer and seems to like the UK. Donald Trump on the other hand, very obviously, does not like the European Union at all," he said.
A day after Mr Trump and Ms von der Leyen met, the US president flagged other countries on the baseline tariff, which includes Australia, would see their tariffs increase from 10 to 15 per cent.
In coming years, Professor Menon said it would be interesting to see whether major economies began diverting trade away from the US to other markets.
But barring that, he said the best route for Anthony Albanese to help Australia reduce tariffs was to get on the president's good side.
"Exploit any personal relationship you have to try and get as good a deal as you possibly can," he said.
"Get on well with Donald Trump is the first tip."
ABC/Wires
