EU Parliament Approves Tariff Cuts on US Goods, Averting Trade Conflict
Quick Look
- The European Parliament approved cutting import duties on US industrial goods, fulfilling a trade deal and averting new tariffs threatened by Donald Trump.
- The EU aims to meet a July 4 deadline.
AI-generated summary
Why It Matters
The European Parliament approved cutting duties on US goods imports to fulfill a trade deal, averting a tariff conflict threatened by Donald Trump.
The European Parliament approved on Tuesday cutting duties on many US goods imports to fulfil the European Union’s side of a trade deal struck last year, and avert a new round of tariff conflict between the world’s largest trading partners.
US President Donald Trump struck a framework deal with the European Union at his Turnberry golf course in Scotland last July under which the EU agreed to remove import duties on US industrial goods in return for tariffs of 15 per cent on most EU goods.
Almost 11 months later, the EU has yet to implement the import duty cuts, prompting Trump to threaten “much higher” tariffs unless the EU took action by July 4.
The EU should meet that deadline after its assembly cleared the last significant legislative hurdle. It also extended duty-free imports of US lobsters, a mini-deal struck with Trump in his first term as president.
“A deal is a deal – and the EU is delivering its part,” European Commission President Ursula von der Leyen said on social media.
EU countries are now expected to give their final nod on June 26, the last step in a fitful, year-long ratification process.
Open Questions
- Will EU countries give final approval on June 26?
- Will the US reciprocate further tariff reductions?
