German auto companies embraced greater clarity but warned that even the lower rate of tariffs agreed between Brussels and Washington would still hurt.

EDINBURGH, Scotland (AP) — The United States and the European Union agreed on Sunday to a trade framework setting a 15% tariff on most goods, staving off — at least for now — far higher import duties on both sides that might have sent shock waves through economies around the globe.

The U.S. and the European Union announced a new trade agreement framework over the weekend, setting a 15% tariff on most goods imported from the EU.

The 15% tariff would be lower than previously threatened, but it would remain a high duty on America’s largest trading partner.

Many pharmaceutical products made in Europe will face a 15 percent tariff, pinching manufacturers and potentially leading to higher drug prices.

Trump had most recently threatened tariffs of 30% on imports from the European Union. But on Sunday, he met with the president of the European Commission, and they agreed to a lower level.

A new 15% tariff go into effect on imports to the U.S. from the European Union starting Friday. Last year, those same goods were taxed at about 1.2%. Former Rep. Max Rose, Staff Writer at The Atlantic Ashley Parker and Mark McKinnon,

The European Union and the United States reached a new trade agreement on tariffs over the weekend, which is expected to result in only modest increases in the cost of cars and auto parts imported from EU countries,