EU Council, European Parliament reach deal on US trade pact

The Council of the EU and the European Parliament reached a provisional agreement on Wednesday on two regulations to implement tariff-related elements of the EU-US trade deal agreed last year.

“The EU and the United States share the world’s largest and most integrated economic relationship,” Michael Damianos, Greek Cypriot Administration’s energy, commerce and industry minister said in a statement.

He added that the agreement ensures “robust safeguards to be able to protect European interests, businesses and workers.”

Under the deal struck in Scotland last July, the EU agreed to remove import duties on US industrial goods and grant preferential access to US farm and sea produce. In exchange, the US would impose tariffs of 15% on most EU goods.

Trump has said he would impose much higher tariffs on EU goods including cars if the EU did not implement its trade deal commitments by July 4. He earlier threatened to raise tariffs on EU car imports to 25%.

The first regulation removes remaining customs duties on US industrial goods and grants preferential access, including tariff rate quotas and reduced tariffs for certain seafood and non-sensitive agricultural products.

The second regulation extends the suspension of duties on lobster imports, including processed products.

The agreement includes a safeguard mechanism allowing the EU to act in case of a significant rise in imports from the US that could harm domestic producers.

It also strengthens provisions enabling the Commission to suspend the regulation if the US fails to meet commitments under the joint statement or disrupts trade relations, including through discriminatory measures against EU operators.

A sunset clause was introduced, meaning the regulation will expire at the end of 2029 unless extended.

The agreement also provides for regular monitoring of its economic impact, with the Commission required to report on trade developments and assess the effects of the measures, including on small and medium-sized enterprises.

“A deal is a deal, and the EU honors its commitments,” European Commission President Ursula von der Leyen said on US social media company X.

She added that the agreement would allow the EU to deliver on its part of the joint statement and called on co-legislators to “move swiftly and finalize the process.”

“Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade,” she said.

Once finalized, the regulations will need to be formally adopted by both institutions before entering into force following publication in the Official Journal.