The European Union has finally agreed to implement its trade deal with the United States after five hours of talks between members of the European Parliament and member states. The agreement, struck last July at US President Donald Trump's Scottish golf course, will remove import duties on most US goods entering the EU.
European Commission President Ursula von der Leyen welcomed the pact, saying: 'This means we will soon deliver on our part. Together, we can ensure stable, predictable, balanced and mutually beneficial transatlantic trade.' The deal puts the bloc on track to meet Trump's 4 July deadline for ratification, which has already been implemented in the US.
MEPs had twice frozen the ratification process in protest at Trump's threats to increase tariffs and take control of Greenland. In a significant victory, they forced the insertion of a clause warning that the EU could reinstall tariffs on American products such as motorbikes if the US did not drop tariffs on steel derivatives by the end of the year.
The final text empowers the European Commission to trigger a suspension mechanism if the US fails to meet its commitments or disrupts trade and investment with the EU. The deal also includes a sunset clause allowing the EU to end the agreement on 31 March 2028, though this was extended to May 2029 to coincide with a new US presidential administration.
Despite the US Supreme Court ruling that Trump's 15% tariffs on most EU exports were illegal, EU chiefs decided to honour the deal to stabilise the trading environment for businesses, including the car industry hit with 27.5% tariffs. The transatlantic relationship is worth more than €1.8tn in 2025.
