EU gives US Trade Deal final approval ahead of Trump deadline

The European Union’s US trade deal is set to go into effect after the bloc gave its final sign-off, banking that the pact will ensure some stability despite ongoing economic tensions, Bloomberg reports.

EU member states approved the agreement on Thursday, ending nearly a year of halting ratification talks that almost undid the entire arrangement. Under the deal, the EU will erase levies on US industrial goods and some agriculture products in exchange for a 15% tariff ceiling on its US exports.

The deal’s implementation is likely to offer some immediate relief to strained transatlantic ties — US President Donald Trump had threatened to hit the EU with fresh tariffs if it didn’t move forward by July 4. But the two sides are still at odds over issues like metals tariffs and tech regulations, which could upend the relationship in the coming months.

The EU-US trade deal faced a rocky path to finalization after Trump and European Commission President Ursula von der Leyen, the bloc’s top executive, first struck an agreement last summer.

The EU was keen to avoid a tariff war and keep Trump engaged on security matters, including Ukraine. But the bloc struggled ratify the agreement. On two occasions, EU lawmakers paused the process, once because of Trump’s threats to seize Greenland and again after a US court invalidated the president’s global tariff regime.

Meanwhile, the US partially implemented its part of the deal, eventually prompting Trump’s anger.

Ultimately, the EU was able to push through ratification after the European Parliament amended the agreement to include an expiration date at the end of 2029 and provisions to suspend the deal if Washington violates its terms.

Still, the transatlantic trade relationship remains strained. Earlier this month, Trump threatened France with a 100% tariff on all champagnes and wines over the country’s digital taxes. Moreover, the two sides have unresolved disagreements over US tariffs on goods using steel and aluminium, as well as the EU’s tech regulations.

The new accord will also face a test in the coming weeks as both sides rush to conclude an agreement on aircraft subsidies before a five-year truce suspending $11.5 billion in retaliatory tariffs expires on July 11.

A European Commission spokesperson said discussions with the US administration are ongoing to continue the suspension of countermeasures on both sides.

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