[Stay on top of transportation news: Get TTNews in your inbox.]
EU Lawmakers Clear U.S. Trade Deal for Final Approval
Trump Has Set July 4 Deadline
Key Takeaways:
- EU lawmakers cleared the pact for a final vote (June 16), aiming to avoid higher U.S. tariffs threatened if not approved by July 4.
- The EU would eliminate tariffs on U.S. industrial goods, while the U.S. caps most EU export tariffs at 15%.
- The revised deal includes expiration (through 2029) and suspension clauses, allowing the EU to pull back concessions if U.S. tariffs exceed agreed levels.
European Union lawmakers gave preliminary approval to a U.S. trade deal, clearing a path for final ratification before President Donald Trump’s threatened deadline to impose new tariffs.
The European Parliament’s trade committee greenlit the agreement on June 2, just days after EU negotiators overcame lingering disputes to finalize the text.
The vote was expected after trade committee chief Bernd Lange signaled his support. The full European Parliament is now scheduled to vote on ratification on June 16. EU member states are expected to give their final assent shortly after that.
The EU is under a tight deadline to implement the transatlantic trade pact, as Trump has vowed to hit the bloc with new levies if it doesn’t approve the agreement by July 4.
The deal was initially reached last summer, but the EU has paused ratification twice over Trump’s threats on Greenland and a U.S. court ruling invalidating the president’s global tariffs. The delays have strained relations between the two trading partners, which are also at odds over the Iran war.
The agreement would see the EU erase levies on U.S. industrial goods in exchange for a 15% tariff ceiling on its exports. Trump has said he will raise tariffs on European automobiles to 25% if the deal is not in place by his deadline.
The EU’s final text slightly amends the original pact, imposing an expiration date at the end of 2029 and allowing the bloc to suspend the pact if tariffs on products with steel and aluminum exceed 15% after 2026.
