Overview
- EU negotiators from the Parliament, Commission and Council agreed a provisional implementing text late on Wednesday that formalizes the Turnberry commitments and prepares the law for ratification.
- The text fixes a 15% cap on many U.S. duties for EU exports and commits the EU to remove tariffs on many U.S. industrial goods and selected agricultural products.
- The agreement includes conditional safeguards allowing the Commission to suspend tariff preferences if the United States does not cut steel and aluminium duties to 15% by December 31, 2026, and it postpones the pact’s sunset clause to December 31, 2029.
- President Trump has warned he will raise U.S. tariffs, including a threatened rise on autos to 25%, if the pact is not implemented by his July 4 deadline, and U.S. trade officials have said further talks are needed on non‑tariff barriers and regulation.
- European negotiators scaled back contested parliamentary measures to secure the compromise, a move that aims to give businesses greater short‑term certainty but leaves regulatory and enforcement issues unresolved and likely to be negotiated at the G7 and in follow‑up talks.