The European Union reached a provisional agreement on Wednesday, May 20, to eliminate import duties on American products, a key element of the trade agreement reached with Washington last July, a measure that could prevent an increase in US tariffs on EU products.
Under the agreement reached last July at the Turnberry golf complex in Scotland, owned by US President Donald Trump, the EU agreed to eliminate tariffs on American industrial products and to grant preferential access to American agricultural products. In return, the United States would impose a 15% tariff on most EU products. Nearly ten months after this framework agreement, the European Parliament and the Council, representing EU governments, have agreed on a legislative text, paving the way for the entry into force of EU tariff reductions, along with guarantees in case Donald Trump reverses the agreement.
“I welcome the agreement reached by the European Parliament and the Council on reducing tariffs on American industrial exports to the EU. This means that we will be able to honor our part of the EU-US joint declaration, as promised. I now call on legislators to act quickly to finalize the process,” wrote European Commission President Ursula von der Leyen. “Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade,” she added.
Zeljana Zovko, chief trade negotiator for the European People’s Party (PPE) group on the US deal, also wrote that the agreement would provide a more stable framework for EU-US trade relations while leaving room for new discussions on unresolved issues, particularly in the steel and aluminum sectors.
A final vote in the European Parliament
Donald Trump has stated that he would impose much higher tariffs on EU products, including cars, if the European Union does not uphold its trade agreement commitments by July 4, after previously threatening to raise tariffs on EU car imports to 25% from the current 15%.
European lawmakers had twice suspended consideration of the required legislation after Donald Trump’s threats to impose new tariffs on European allies who did not support his Greenland acquisition project and after the US Supreme Court invalidated his global tariffs.
Europeans are now expected to meet the July 4 deadline set by Donald Trump, with a final approval vote in the European Parliament expected in mid-June.
European lawmakers wanted stricter guarantees, including an “immediate application clause” under which the EU would only reduce tariffs when the US fulfills its commitments, the possibility to suspend the agreement if the US breaches terms, and an “expiry clause” ending EU tariff concessions on March 31, 2028. EU governments were less inclined to include such elements, fearing alienating the Trump administration and creating uncertainty for EU businesses.
