The US and European Union have reached a trade agreement, ending months of tension. After talks in Scotland, President Donald Trump and European Commission President Ursula von der Leyen agreed to a 15 percent US tariff on EU goods—half the 30 percent Trump had earlier threatened, BBC reported.

In exchange, the EU will open its markets to select US products with zero tariffs and invest over $1.3trn in the US, mainly in energy and defense. Some key goods like aircraft parts and chemicals will be exempt from tariffs, though Trump’s 50 percent steel and aluminium tariff remains.

Both leaders hailed the deal as a breakthrough. While the US expects major economic gains, EU leaders responded cautiously, warning the new terms still raise trade costs, according to BBC.