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, in the hope of averting more tariffs threatened by Donald Trump. The agreement, struck last July at the US president's Scottish golf course, can now enter into force, removing import duties on most US goods entering the EU.
European Commission President Ursula von der Leyen welcomed the pact, stating: 'This means we will soon deliver on our part. Together, we can ensure stable, predictable, balanced and mutually beneficial transatlantic trade.' The agreement puts the bloc on track to meet Trump's 4 July deadline for ratification, which has already been implemented in the US.
Trade Commissioner Maroš Šefčovič said of the talks that ended at about 2am in Brussels: 'Collective effort. Strong result. Meaningful work. After more than five hours of intensive negotiations … the EU has shown that we are a reliable trading partner, while standing firm in defending the interests of European stakeholders.'
MEPs had twice frozen the ratification process in protest at Trump's threat of higher tariffs in January and his threat to 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 also 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. A sunset clause allows the EU to end the deal on 31 March 2028, though parliament had hoped for an earlier date. Bernd Lange, chair of the parliamentary trade committee, said parliament would not hesitate to trigger the suspension clause if Trump breached his side of the deal.
The European Parliament is expected to vote on the deal on 16 or 17 June. The transatlantic relationship is the EU's most significant, worth more than €1.8tn in 2025.
