EU Approves US Trade Deal to Avert Trump Tariffs

The European Union agreed Tuesday to implement a trade deal with the United States after five hours of negotiations between European Parliament members and member states, seeking to avert further tariffs threatened by President Donald Trump.

The agreement, reached last July at Trump’s Scottish golf course, can now take effect, removing import duties on most U.S. goods entering the EU.

“This means we will soon deliver on our part,” said European Commission President Ursula von der Leyen, welcoming the pact. “Together, we can ensure stable, predictable, balanced and mutually beneficial transatlantic trade.”

The deal puts the bloc on track to meet Trump’s July 4 deadline for ratification, which the U.S. has already implemented.

Trade Commissioner Maroš Šefčovič, after talks ending about 2 a.m. in Brussels, said: “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 ratification in protest over Trump’s threat of higher tariffs in January and his subsequent threat to take control of Greenland.

Although the U.S. Supreme Court had ruled Trump’s imposition of 15% tariffs on most EU exports illegal, EU leaders decided to honor the deal to stabilize the trading environment for businesses, including the car industry hit with 27.5% tariffs.

MEPs had demanded a sunset clause allowing the EU to end the deal on March 31, 2028, and a suspension clause if Trump broke his word and increased the 15% tariff rate.

The transatlantic relationship remains the EU’s most significant, worth more than €1.8 trillion in 2025.

The final text empowers the European Commission to trigger the suspension mechanism if the U.S. fails to meet commitments or disrupts trade and investment with the EU, including by “discriminating against or targeting EU economic operators.”

It also gives the EU means to address spikes in U.S. imports “that cause or threaten to cause serious injury to domestic producers,” with suspension again a possible outcome.

Parliament also agreed to scale back some demands, notably giving the U.S. until the end of the year to reduce its 50% tariff on steel to 15% rather than insisting on it as a precondition.

The head of parliament’s trade committee, Bernd Lange, played down the concessions, declaring after the deal was announced that “parliament has prevailed with its demands for a comprehensive safety net.”

Anna Cavazzini of the EU’s Greens said the deal “puts the EU at a disadvantage” while conceding “it can secure a certain degree of economic stability.” She said: “One can only hope that the agreement on the tariff deal will now calm the situation, so that other major issues in the EU-US relationship can be addressed.”