The European Union reached an agreement early Wednesday to implement a long-delayed trade pact with the United States, likely avoiding threatened tariff hikes by President Donald Trump.
After more than five hours of negotiations between the European Parliament, EU member states and the European Commission, officials agreed on legislation to enact the Turnberry trade accord reached last summer in Scotland.
The deal removes EU tariffs on U.S. industrial and some agricultural products, while Washington caps tariffs on most European exports at 15 percent. Talks had stalled after Trump threatened to annex Greenland and following U.S. court rulings that disrupted parts of his tariff agenda.
Tensions intensified after Trump warned he would impose 25 percent tariffs on European cars from July 4, raising fears for the €1.7 trillion transatlantic trade relationship amid wider economic pressures linked to Middle East instability.
The compromise includes safeguards allowing the Commission to suspend the agreement if the U.S. fails to reduce steel and aluminum tariffs, currently as high as 50 percent, by the end of 2026. A sunset clause would also see the agreement expire in December 2029.
Despite opposition from some liberal and left-wing lawmakers, the center-right European People’s Party is expected to back the deal ahead of a crucial parliamentary vote in Strasbourg next month.
