EU Ambassadors Greenlight US Trade Deal

One week after EU diplomats and lawmakers agreed to eliminate EU duties on most US industrial goods under the EU-US trade agreement, EU ambassadors on Wednesday greenlit a deal with the European Parliament, paving the way for the full agreement's formal adoption by the EU Council.

The procedural step comes as the US pressures Europeans to implement the EU-US deal clinched last summer by US President Donald Trump and European Commission President Ursula von der Leyen after weeks of renewed trade tensions.

Trump has threatened to impose 25 percent tariffs on EU cars if the deal is not enforced by the EU by 4 July.

On their side, MEPs still have to formally endorse the agreement reached on the EU side, with a tentative vote scheduled during the plenary session between 15 and 18 June.

"The agreement we reached with the European Parliament marks an important step in delivering on the EU’s commitments,” said a spokesperson for the Cypriot Presidency, which negotiated with MEPs on behalf of EU member states.

The spokesperson added that “robust safeguards” had been included in the agreement “to protect the interests of European businesses and economic operators".

The deal, considered lopsided by many MEPs, states that the EU would face 15 percent US tariffs while eliminating its own duties on US goods.

However, after Trump repeatedly threatened to impose new tariffs in breach of the deal, EU lawmakers pushed member states to include conditions such as a “sunset” clause that would terminate the agreement on 31 December 2029 unless renewed.

Under the agreement reached last week, the Commission would also be able to suspend the trade deal at the request of either Parliament or a member state if the US fails to lift tariffs on European steel and aluminium products by the end of 2026.