EU and US Confirm Trade Pact to Avert Tariff Threats from Trump
EU Chief Says 'A Deal Is A Deal' As Bloc Confirms US Trade Pact To Dodge Trump's Tariff Threats
Image: Benzinga
The European Union (EU) confirmed a trade agreement with the United States to mitigate potential tariffs from President Donald Trump. The deal, which includes tariff reductions on U.S. industrial goods and select agricultural products, aims to enhance transatlantic trade stability and cooperation, with provisions for suspension if the U.S. fails to lower tariffs on European steel and aluminum imports by the end of 2026.
- 01The EU will eliminate tariffs on U.S. industrial goods and select agricultural products, while the U.S. will limit tariffs on most European exports to 15%.
- 02The agreement is set to remain effective until December 2029, with a provision allowing the EU to suspend the deal under certain conditions.
- 03EU trade chief Maroš Šefčovič emphasized the deal's potential to boost transatlantic stability and cooperation after over five hours of negotiations.
- 04The pact faced delays due to Trump's controversial remarks about Greenland and a Supreme Court ruling affecting his tariff agenda.
- 05Negotiators did not include a clause to cancel the trade deal if the U.S. threatens EU territorial sovereignty again.
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The European Union (EU) has confirmed a significant trade agreement with the United States, aimed at circumventing the tariffs threatened by President Donald Trump. Following over five hours of negotiations, representatives from the European Parliament, the Council of the EU, and the European Commission reached a consensus on the deal. EU trade chief Maroš Šefčovič highlighted that the agreement, rooted in a prior deal made at Trump's golf resort in Turnberry, Scotland, will enhance transatlantic stability and cooperation. The EU will eliminate tariffs on U.S. industrial goods and select agricultural products, while the U.S. has committed to limiting tariffs on most European exports to 15%. The pact is scheduled to remain in effect until December 2029, with a provision allowing the EU to suspend the agreement if the U.S. does not reduce tariffs on European steel and aluminum imports by the end of 2026. However, despite progress, the agreement was overshadowed by rising tensions, including Trump's threats regarding Greenland and NATO members. The deal's formalization is expected to take place soon, with retroactive regulations for lobster imports effective from August 1, 2025.
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The trade agreement is expected to stabilize trade relations between the EU and the U.S., potentially benefiting industries reliant on transatlantic trade.
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