The European Union has reached a provisional agreement on legislation to remove import duties on U.S. goods, a key part of a trade deal reached with Washington in July. This move is likely to avert higher U.S. tariffs on EU products.
The deal, struck at U.S. President Donald Trump's Turnberry golf resort in Scotland, involves the EU eliminating duties on U.S. industrial goods and granting preferential access to U.S. farm and sea produce, while the U.S. keeps tariffs of 15% on most EU goods.
After five hours of negotiations, the European Parliament and the Council agreed on a text allowing the EU duty reductions. They also included provisions to suspend concessions if Trump reneges, and a sunset clause to end the deal by 2029 unless renewed.
The internal EU deal should stabilize the world's largest trading relationship, worth $2 trillion annually. Trump has set a July 4 deadline for the EU to implement commitments, threatening higher tariffs on EU cars.
EU lawmakers had paused the legislation after Trump's threats. The bloc now expects a final approval vote in mid-June. The European Commission can also suspend tariff preferences if the U.S. keeps tariffs above 15% on steel and aluminum derivative products.
