EDINBURGH, Scotland -- 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.

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

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

The sharp increase in U.S. trade tariffs on European Union member countries won't trigger immediate sovereign rating cut, but could compound existing pressures, Fitch said on Tuesday.

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.

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,

Dutch healthcare technology company Philips on Tuesday lowered its estimated impact from import tariffs after the U.S. and the European Union agreed to the United States imposing a 15% rate on most EU goods.

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,