Stocks Market
EU Secures Provisional Deal to Slash US Tariffs Ahead of Trump Deadline
The European Union announced on Wednesday a provisional deal that will remove customs duties on a wide range of US‑origin goods. The move aligns with the trade pact signed last year, averts a threatened tariff hike from President Donald Trump, and paves the way for the European Parliament to approve the cuts by mid‑June.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Background
On Wednesday the European Union reached a provisional agreement to lift customs duties on a broad range of American products. The deal follows the trade accord concluded with the United States last July, which required the EU to eliminate tariffs on US industrial goods and grant preferential access for US agricultural and fishery products.
Key Provisions
- Removal of EU tariffs on US‑made industrial items.
- Preferential market entry for US agricultural and seafood exports.
- In return, the United States will maintain a 15% tariff on most EU‑origin goods.
Political Context
The provisional text was approved by both the European Parliament and the EU Council, clearing the path for the tariff reductions to take effect. Zeljana Zovko, the lead negotiator for the European People’s Party (EPP), highlighted that the agreement prevents a damaging trade escalation, protects European businesses, investments and millions of jobs on both sides of the Atlantic.
President Donald Trump has given the EU until July 4 to honour the trade deal, after which US tariffs could increase sharply. The EU now faces that deadline, with a final parliamentary vote scheduled for mid‑June.
With this arrangement, Europe aims to secure a more stable trading framework with the United States while leaving room for further talks on contentious sectors such as steel and aluminium.