The European Union has approved a trade deal with the United States that removes import duties on most American goods, according to multiple reports. The agreement was reached after five hours of negotiations between members of the European Parliament and EU member states. This move is expected to avert higher tariffs threatened by US President Donald Trump.
Key Takeaways
The European Union has approved a trade deal with the United States that removes import duties on most American goods. This agreement aims to stabilize transatlantic trade relations and avert higher tariffs threatened by US President Donald Trump.
- EU approves trade deal removing import duties on U.S. industrial goods
- Agreement includes safeguards for domestic producers and a sunset clause ending in 2029
- U.S. must reduce steel tariffs to 15% by year-end or face suspension of preferences
- EU lawmakers criticize the deal as unbalanced, with higher U.S. tariffs on EU goods
The provisional agreement includes a 'dedicated safeguard mechanism,' which would allow the EU to suspend tariff reductions if they harm domestic producers within the bloc, as reported by UPI News. The safeguard can be triggered by a request from three or more member states, EU industry or trade unions, or the European Commission.
The deal, struck last July at Trump's Turnberry golf resort in Scotland, aims to stabilize transatlantic trade relations. Under the agreement, the EU will remove import duties on U.S. industrial goods and grant preferential access to U.S. farm and sea produce. In exchange, the United States will impose tariffs of 15% on most EU goods.
The European Commission President Ursula von der Leyen welcomed the pact, stating that it ensures 'stable, predictable, balanced and mutually beneficial transatlantic trade.' The agreement includes safeguards such as a sunset clause to terminate the deal at the end of 2029 unless renewed by new legislation. It also empowers the European Commission to suspend tariff preferences if the US fails to meet its commitments or disrupts trade with the EU.
EU lawmakers had twice paused the legislative process in protest against Trump's threats to impose higher tariffs and his attempt to acquire Greenland, according to UPI News. However, despite demands for tougher guarantees, the final text gives the US until the end of the year to reduce its 50% tariff on steel to 15%. The European Parliament is expected to vote on final approval in mid-June.
The EU, under the Turnberry Agreement, agreed to invest $600 billion into strategic sectors in the United States through 2028. It also agreed to buy $750 billion worth of American energy.
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