EU-US trade deal to take effect before Trump deadline

BRUSSELS - European Union (EU) states gave their final approval on June 25 to a year-old tariff deal with the United States, allowing it to enter into force ahead of a July 4 deadline set by US President Donald Trump.

Struck between Trump and EU chief Ursula von der Leyen in July 2025, the deal sets levies of 15 per cent on most EU exports to the US, and zero tariffs for US industrial goods entering the 27-nation bloc.

But the EU had yet to fulfil its side of the accord – after Trump’s threats to Greenland and a US Supreme Court decision striking down many of his tariffs fuelled months of delay.

The sign-off by member states – who had already agreed over the deal in substance – clears the final legislative hurdle on the EU side, following Parliament’s approval earlier in June.

The deal’s approval “confirms the EU’s commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guard rails to protect European economic interests”, an EU statement said.

Lawmakers added a series of safeguards, including giving the European Commission power to suspend the pact if the US side fails to meet its commitments or acts to disrupt trade and investment.

Parliament also introduced an expiration date of end-2029, unless the agreement is renewed by then.

“Openness must go hand in hand with safeguarding our interests,” said Michael Damianos, the Commerce Minister for Cyprus, which holds the EU’s rotating presidency.

“These measures achieve both, supporting stable and predictable trade flows with the US while ensuring the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake,” he said.

The two texts enacting the EU side of the accord – removing duties on US industrial goods and introducing preferential access for certain seafood and farm products – will formally take effect a day after publication in the EU’s official journal. AFP