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 trade war was expected to escalate out of control. Markets were forecast to plunge. None of that happened – at least, not yet. President Donald Trump has pulled off what few outside the White House predicted: A trade war victory of sorts that sets America’s taxes on imported goods higher than the infamous Smoot-Hawley era,

Oil prices rallied Tuesday as the U.S.-European Union trade agreement “averts a broader tariff war” and as U.S. and Chinese officials meet in Stockholm to try to de-escalate trade tensions, said Brian Swan,

Oil prices rose on Tuesday, extending the previous day's rally, on optimism that a trade war between the U.S. and its major trading partners was abating and as President Donald Trump ramped up pressure on Russia over its war in Ukraine.

The European Union dominates critical pharmaceutical imports into the United States, making the 30% tariffs Trump threatened to go into effect Aug. 1 particularly risky.

The euro’s fall accelerated on Monday, putting the currency on course for its steepest one-day drop against the dollar since May, as investors bet that the EU-US trade deal would hurt the European economy.