WASHINGTON : The agreement, reached between the European Parliament and the Council of the European Union after nearly five hours of negotiations, will allow the bloc to move ahead with legislation aimed at removing import duties on American industrial goods while granting preferential access to US agricultural and marine products.
The move stems from a framework trade agreement reached in Scotland in July, under which the EU agreed to lower trade barriers for American goods, while the United States imposed tariffs of 15 percent on most European exports.
As part of the latest negotiations, EU lawmakers also agreed on safeguard measures that would suspend the concessions if the United States fails to uphold its side of the agreement. The legislation will also automatically expire by the end of 2029 unless extended through fresh approval.
The development is expected to bring stability to one of the world’s largest trading relationships, with annual trade in goods and services between the two economies valued at nearly $2 trillion.
The agreement comes amid growing pressure from Washington. Trump has repeatedly warned of imposing significantly higher tariffs on European products, particularly automobiles, unless the bloc fulfills its commitments before July 4. Earlier, he had threatened to raise tariffs on EU car imports to 25 percent from the current 15 percent.
The EU, which depends on the US market for roughly 20 percent of its goods exports, is expected to finalize the measure in time, with a final approval vote anticipated in the European Parliament by mid-June.
Meanwhile, the American Chamber of Commerce to the European Union welcomed the progress, describing the agreement as a critical step toward ensuring stability for businesses dependent on transatlantic trade and investment ties.
The breakthrough also comes shortly after Trump’s visit to China, where discussions remained largely cordial but failed to produce major trade progress, further intensifying Washington’s focus on reducing its goods trade deficit with the European Union, which currently exceeds $200 billion.
EU lawmakers reached a deal to scrap import duties on US industrial goods and grant preferential access for American farm and marine products, implementing a Scotland framework pact. Safeguards allow suspending concessions if Washington backtracks, and the law sunsets in 2029 without renewal. The move aims to stabilize a $2 trillion trade relationship under pressure from Trump’s tariff threats.