EU agrees to implement US trade deal struck last summer | European Union
The EU has finally decided to implement its trade deal with the US after five hours of talks between members of the European parliament and member states in a bid to prevent further tariffs threatened by Donald Trump.
This means the agreement signed at the US president’s golf course in Scotland last July could now come into force and remove import duties on most US products entering the EU.
Welcoming the agreement, European Commission president Ursula von der Leyen said: “This means we will soon fulfill our part.” “Together we can ensure stable, predictable, balanced and mutually beneficial transatlantic trade.”
The agreement keeps the bloc on track to meet Trump’s July 4 deadline for ratifying the agreement, which is currently in place in the United States.
Trade commissioner Maroš Šefčovič said of the talks, which ended around 2 a.m. in Brussels: “Joint effort. Strong result. Meaningful work. After more than five hours of intense negotiations… the EU has shown that we are a reliable trading partner while standing firm in defending the interests of European stakeholders.”
Lawmakers had twice frozen the process to approve the deal in protest of Trump’s threat to raise tariffs in January and his subsequent threat to seize control of Greenland.
In a significant victory, MEPs forced the inclusion of a clause warning that if the United States does not reduce tariffs on steel derivatives (products containing a steel element) by the end of the year, the EU may revise tariffs on American products such as motorcycles.
Bernd Lange, chairman of the parliamentary trade committee, said it was a “tough” part of the negotiations with the committee, which extended talks from midnight to 2am. He said the commission was “a little nervous about this,” an apparent reference to Trump’s fear of retaliation.
Lange said that if there are no more problems, the European Parliament will vote on the agreement on June 16 or 17.
Although the US supreme court ruled that Trump’s imposition of 15% tariffs on most EU exports was illegal, EU leaders agreed to comply with the deal to stabilize the trading environment for businesses, including the auto industry, which was hit with 27.5% tariffs.
Lawmakers had requested a sunset clause allowing the EU to end the deal on March 31, 2028, and a suspension clause if Trump breaks his promise and increases the 15% tariff rate.
The transatlantic relationship is the EU’s most important relationship, with a value exceeding €1.8 trillion in 2025.
The final text gives the commission the power to trigger the suspension mechanism if the United States fails to meet its commitments or disrupts trade and investment with the EU, including by “discriminating against or targeting EU economic operators.”
The final sunset clause is a year later than hoped, but the deal’s expiration in May 2029 would coincide with a new presidential administration, Lange said. He said parliament would not hesitate to invoke the suspension clause if Trump violated his side of the agreement before then.
He said the sunset clause was an important addition to the deal that would help small and medium-sized businesses, as no impact assessment had been carried out before the deal in Scotland.
This gives the EU the ability to combat spikes in US imports that “cause or threaten to cause serious harm to domestic producers,” with suspension again a possible outcome.
Parliament agreed to scale back some demands, and the final text gives the United States until the end of the year to reduce its 50% tariff on steel to 15% rather than insisting on it as a precondition.
Lange downplayed the concessions received from MPs, saying: “Parliament prevailed by demanding a comprehensive safety net.”
Anna Cavazzini, one of the EU Greens, said the agreement “puts the EU at a disadvantage” but acknowledged that it “could secure a certain economic stability”. He said: “We can hope that agreement on the tariff agreement will now calm the situation so that other important issues in the EU-US relationship can be resolved.”
