European Union reaches provisional deal on US tariffs
The European Union has reached a tentative agreement on legislation to eliminate import duties on U.S. goods, a key part of the trade deal reached with Washington in July; this was likely a move to avoid higher US tariffs on EU products.
Under the terms of the deal struck at US President Donald Trump’s Turnberry golf resort in Scotland in July, the EU agreed to eliminate import duties on US industrial products and provide preferential access to US agricultural and seafood products.
In return, the US will impose a 15 percent tariff on most EU goods.
Nearly 10 months after this framework agreement, the European Parliament and the Council, the body representing EU governments, agreed on a legislative text that paves the way for EU tax cuts to come into force with safeguards if Trump abandons the agreement.
“I am proud to announce that Europe has avoided a damaging escalation of transatlantic trade tensions and protected European companies, investments and millions of jobs on both sides of the Atlantic,” Zeljana Zovko, the European People’s Party group’s chief trade negotiator on the U.S. deal, said in an X post announcing the deal.
“The agreement is expected to provide a more stable framework for EU-US trade relations, as well as leaving room for further discussions on unresolved issues, particularly in the steel and aluminum sector,” the European People’s Party said.
Trump has said he will impose much higher tariffs on EU goods, including cars, if the European Union does not meet its trade deal commitments by July 4, and has previously threatened to raise tariffs on EU car imports to 25 percent from the current 15 percent.
EU lawmakers had twice paused the necessary legislation after Trump threatened to impose new tariffs on European allies that did not support his offer to buy Greenland, and after the US Supreme Court struck down Trump’s global tariffs.
The bloc must now meet Trump’s July 4 deadline, with a final approval vote in the European Parliament expected in mid-June.
EU lawmakers had sought tighter safeguards, including a “sunrise clause” under which the EU would only cut tariffs when the US fulfills its part of the deal, the possibility of suspending the deal if the US breaches terms, and a “sunset clause” that would end EU tariff concessions on March 31, 2028.
EU governments have been less keen on including such elements, worrying that they could antagonize the Trump administration and create uncertainty for EU business.
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