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EU Nears Deal to Implement U.S. Trade Pact as Tariff Deadline Looms

Negotiators are weighing safeguards that tie EU duty cuts to verified U.S. compliance.

Overview

  • EU Parliament and member-state negotiators, meeting Tuesday night in Strasbourg, moved to clinch a final text that would let the bloc scrap duties on most U.S. industrial goods.
  • Under last July’s Turnberry accord, the EU would remove those import duties while the United States would cap most tariffs on EU goods at 15 percent.
  • Parliament is pushing a tougher safety net that includes a sunrise clause linking EU tariff cuts to U.S. delivery, a suspension tool for breaches, and a sunset that would end EU concessions on March 31, 2028.
  • President Trump set a July 4 deadline and warned he could raise tariffs on European cars and trucks to 25 percent, with EU officials targeting a mid‑June Parliament vote if a compromise lands now.
  • Talks restarted after a May 6 breakdown, with the European Commission saying the process is in its final stage, and businesses such as auto makers watching closely for clarity on prices and supply chains.