EU Parliament Approves Turnberry Trade Deal to Head Off U.S. Tariff Threat

Overview

• The European Parliament voted 440 to 151 on Tuesday to approve legislation that implements the EU side of the Turnberry agreement and cuts duties on a range of U.S. imports.
• The Turnberry pact, struck last year at Turnberry golf course, trades EU tariff reductions and market access for U.S. agricultural and industrial goods in return for U.S. 15% tariffs on most EU products.
• Major uncertainties remain because the United States still needs to put its 15% tariffs into law, the U.S. provisional 10% tariff regime runs until July 24, and President Trump had set a July 4 deadline and warned of higher tariffs.
• The new EU law runs to the end of 2029, extends duty-free U.S. lobster imports, and includes safeguards that let the EU suspend concessions or respond if Washington breaches agreed tariff limits or keeps metal-derived product duties above 15% by year-end.
• The vote lowers the chance of an immediate tariff clash but leaves risks for exporters, consumers and political brinkmanship if either side fails to implement or enforces unilateral measures in the coming weeks.