Overview
- EU negotiators in a late-night trilogue in Strasbourg reached a compromise that clears the path for formal ratification by the Council and European Parliament and aims to meet the July 4 deadline set by President Trump.
- Under the agreed rules the EU will remove tariffs on many US industrial goods and expand market access for US seafood and farm products while the US has pledged to cap tariffs on EU imports at roughly 15 percent.
- The package embeds safeguards: the Commission can suspend parts of the deal if the US violates commitments, special measures target products that contain steel or aluminium if Washington keeps higher duties past end‑2026, and the agreement automatically expires on December 31, 2029.
- Key risks remain because a US federal court has ruled large parts of Trump’s tariffs unlawful and legal challenges could change US tariff authority, and EU officials warn the president’s unpredictability could still reopen the conflict.
- The EU has prepared contingency tools, including calibrated counter‑tariffs and an anti‑coercion instrument, and is speeding trade deals with other partners to reduce reliance on a volatile transatlantic relationship.