EU lawmakers and member states have reached a deal to implement a trade pact with the United States, ending months of wrangling over the accord. The agreement follows marathon five-hour negotiations between representatives from the EU Parliament and the EU Council to finalize the legislation and ratify the pact.
The compromise comes as US President Donald Trump threatened to impose fresh tariffs if the deal was not implemented by July 4. Trump had specifically threatened to increase tariffs on European auto imports from 15 percent to 25 percent. The trade agreement, which was originally struck in July 2025 at the US president's golf course in Turnberry, Scotland, had been frozen twice by MEPs in protest of Trump's threats to increase tariffs and take control of Greenland.
The provisional agreement will remove import duties on most US goods entering the EU and caps tariffs on most EU exports at 15 percent. European Commission President Ursula von der Leyen welcomed the legislation, which is intended to avert further tariffs and turn the page on more than a year of transatlantic trade battles. However, the deal remains fragile as long as the US president continues to use tariffs as a tool of political pressure.