The EU reached a provisional agreement to remove import duties on US goods, keeping the bloc on track to meet Trump’s deadline to avoid higher tariffs on European exports.
This kept the EU on track to meet President Donald Trump’s July 4 deadline and avoid higher US tariffs on European goods.
“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,” Zeljana Zovko, the lead trade negotiator in the European People’s Party group on the US deal, posted on X.
“I welcome the agreement reached by the European Parliament and the Council on reducing tariffs for US industrial exports to the EU. This means we will soon deliver on our part of the EU-US Joint Statement, as promised,” European Commission President Ursula von der Leyen psoted on X.
“Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade.”
German Chancellor Friedrich Merz said an agreement showed the bloc was “delivering on its commitments.”
In a post on X, Merz said the deal meant “more security and stability for our businesses.”
What do we know about the US-EU trade deal?
The US-EU trade deal was agreed upon in July last year, after months of tariff uncertainty. Here are some of the most important things to know about it:
- The agreement imposes a 15% US tariff on most EU exports
- The EU pledged €514 billion ($596.3 billion) in investment into the United States, its largest trading partner
- The deal reduced the 25% tariff imposed on European automakers in April 2025
- Before President Donald Trump’s second term, the tariff on European autos stood at 2.5%
- The agreement helps the EU avoid a broader trade war that could hurt business confidence and consumer spending on both sides of the Atlantic
- Several European political and business leaders criticized the deal as harmful to the 27-member bloc
- The EU had initially pushed for a lower 10% tariff rate
- In February, EU lawmakers delayed approval of the deal amid uncertainty over Trump’s tariff policies
- The delay followed a US Supreme Court ruling that struck down many of Trump’s earlier global tariffs
- Trump later imposed a new blanket 15% tariff in response to the court ruling
What concessions did the EU make?
EU lawmakers softened several demands during negotiations, including a proposal to suspend favorable tariffs for US exporters if Washington breached the terms of the deal.
The final text also gives the US until the end of the year to remove steel surtaxes above 15%, instead of making it a precondition for the agreement.
Lawmakers of the bloc had also pushed for stronger so-called “sunrise” and “sunset” clauses under which the EU would only cut duties when the US fulfilled its side of the deal and to end EU tariff concessions on March 31, 2028.
Source : https://www.dw.com/en/eu-strikes-deal-on-us-trade-pact-ahead-of-trump-tariff-deadline/a-77222972
