Europe will buy more American weapons and pave way for trade deal, EU Council chief says

NATO's statement to much than treble allies' defence spending targets volition rebalance Europe's commercialized relations with the U.S. and spot the portion bargain much American weaponry, European Union Council President Antonio Costa told CNBC connected Friday.

Earlier this week, NATO allies agreed to much than treble their defence spending people from 2% of gross home merchandise to 5% by 2035.

The determination has solved the main trade-related contented betwixt Europe and the United States, Costa told CNBC's Silvia Amaro.

"What we person decided to bash is fortify our presumption and to presume greater responsibilities successful our ain defense. Then I deliberation we solved already the main issue, and past I deliberation the way is paved to lick the different issues," helium said.

At slightest immoderate portion of this higher defence expenditure volition beryllium utilized to "buy American," according to Costa.

"And of course, if we bargain much American, that means past the commercialized relations rebalance. Then that's the crushed — due to the fact that I person said ever that we cannot abstracted these 2 negotiations astir defence — [that this] was the astir important contented for the United States, and [it] is already solved."

Costa, who served arsenic premier curate of Portugal up until past year, reiterated Trump's erstwhile statements that the subject statement is simply a "big win," adding that it efficaciously rebalances the load sharing connected defense.

The EU is among the commercialized partners rushing to onslaught an statement with Washington up of U.S. President Donald Trump's aboriginal July deadline for hiking alleged reciprocal tariffs connected imports from astir each countries.

Steps toward a woody were made this week aft the U.S. presented the European Commission with a caller proposal. Markets were besides buoyed by the Thursday announcement from White House Press Secretary Karoline Leavitt that the July 8 and 9 deadlines for restarting tariffs connected nations are "not critical."

"Perhaps it could beryllium extended, but that's a determination for the president to make," Leavitt said.

When asked whether the EU could scope a woody up of the July deadlines, Costa said the European Commission is presently assessing the White House's commercialized proposal.

"Both parties are precise engaged to find a solution, and I anticipation that we volition and that we execute this earlier the ninth of July," helium said.