The European Union has moved closer to implementing tariff cuts under last year’s U.S. trade agreement after negotiators agreed on a provisional legislative text.
The European Union reached a provisional agreement on Wednesday (20 May) on legislation to remove import duties on U.S. goods, a key commitment in the trade deal struck with Washington last July.
The agreement between the European Parliament and the Council, which represents EU governments, is expected to pave the way for the EU’s tariff reductions to enter into force while preserving safeguards if U.S. President Donald Trump fails to honour Washington’s side of the accord.
The move follows months of uncertainty over the framework deal reached at Trump’s Turnberry golf resort in Scotland. Under the arrangement, the EU agreed to scrap tariffs on U.S. industrial goods and grant preferential access to U.S. agricultural and seafood products. In return, the United States would apply a 15 per cent tariff on most EU goods.
Trump set a 4 July deadline for the EU to implement its commitments, warning he could impose significantly higher tariffs on EU goods, including cars, if the bloc failed to act. He had earlier threatened to raise tariffs on EU car imports to 25 per cent from the current 15 per cent.
Željana Zovko, the lead trade negotiator in the European People’s Party group on the U.S. deal, said the provisional agreement had helped avoid a damaging escalation in transatlantic trade tensions.
“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,” Zovko said in a post on X announcing the agreement.
The European People’s Party said the deal was expected to provide a more stable framework for EU-U.S. trade relations while leaving room for further talks on unresolved issues, particularly in the steel and aluminium sectors.
EU lawmakers twice delayed the required legislation after Trump threatened to impose new tariffs on European allies that did not support his proposed acquisition of Greenland, and after the U.S. Supreme Court struck down his global tariffs.
The bloc is now expected to meet the 4 July deadline, with a final vote in the European Parliament due in mid-June. The legislative text still reflects a compromise between lawmakers seeking stronger guarantees and governments wary of provoking the Trump administration.
Some EU lawmakers pushed for tougher safeguards, including a “sunrise clause” that would allow EU tariff cuts only once the United States fulfilled its part of the deal. They also wanted the option to suspend the agreement if Washington breached its terms, as well as a “sunset clause” that would end EU concessions on 31 March 2028.
EU governments showed less support for those provisions, according to Reuters, amid concerns the measures could antagonise Washington and create additional uncertainty for European businesses.
The U.S. and Iran have agreed to 'stand down' and resume technical talks, allowing vessels allowed to move freely under the interim peace deal, a U....
Residents of Caracas woke on Monday (29 June) to a magnitude 4.6 aftershock as rescue teams entered a fourth day of intensive search operations follow...
Turkish President Recep Tayyip Erdoğan and German Chancellor Friedrich Merz held a phone call on Monday to discuss bilateral relations, regional deve...
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summ...
With its EU accession talks frozen and its strategic partnership with Washington suspended, Tbilisi has formalised a new alliance with Astana centred ...
Turkish President Recep Tayyip Erdoğan and German Chancellor Friedrich Merz held a phone call on Monday to discuss bilateral relations, regional developments and wider global issues, according to Türkiye’s Communications Directorate.
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summit in Türkiye, but has insisted he will not lead the national delegation.
A high-level summit in Berlin has brought together policymakers, academics and industry leaders to examine how Europe can deepen ties with the Caucasus and Central Asia as shifting geopolitical realities reshape long-standing regional partnerships.
A coalition of Georgian former ministers, diplomats and security experts has issued an urgent warning to the international community: Russia is not merely occupying Georgia's breakaway regions - it is absorbing them, and the window for a meaningful response is rapidly closing.
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Fourteen people were killed on Sunday after a helicopter belonging to Saudi oil giant Aramco crashed in Ras Tanura, according to Saudi state media.
Rescue teams raced on Sunday to find more survivors of the two powerful earthquakes that struck Venezuela this week, with signs of life bringing occasional relief to a grim quest to whittle down a list of tens of thousands missing.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
The United States and Iran have agreed to halt strikes against each other, in a potential breakthrough after weeks of escalating tensions. The two sides are expected to meet in Doha on Tuesday to address their dispute over the Strait of Hormuz.
Residents of Caracas woke on Monday (29 June) to a magnitude 4.6 aftershock as rescue teams entered a fourth day of intensive search operations following last week's powerful earthquakes in Venezuela.
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summit in Türkiye, but has insisted he will not lead the national delegation.
A high-level summit in Berlin has brought together policymakers, academics and industry leaders to examine how Europe can deepen ties with the Caucasus and Central Asia as shifting geopolitical realities reshape long-standing regional partnerships.
A coalition of Georgian former ministers, diplomats and security experts has issued an urgent warning to the international community: Russia is not merely occupying Georgia's breakaway regions - it is absorbing them, and the window for a meaningful response is rapidly closing.
Six adults were killed in a shooting at a youth welfare facility in northern Germany on Monday, with police detaining two people, including the suspected gunman.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment