The European Union (EU) and the United States reached a provisional agreement on Wednesday to eliminate import duties on US industrial goods. The critical decision was reached after marathon five-hour overnight talks in Brussels, aimed at avoiding a series of new tariff restrictions threatened by President Donald Trump.
European Commission President Ursula von der Leyen welcomed the move and urged the European Parliament to speed up the process of approving the law. Previous talks were delayed twice due to geopolitical tensions and a US Supreme Court ruling that partially overturned Trump's unilateral tariff agenda earlier this year.
The draft agreement follows the "Turnberry Agreement" reached in Scotland last year. Under the terms of the agreement, the EU agreed to eliminate tariffs on American industrial goods, while the Trump administration is prepared to cap tariff rates for most European products at 15%.
As a protector of the domestic market, the EU has included a special safeguard mechanism. Brussels retains the legal right to suspend these trade preferences if US imports are found to be harming local producers or Washington refuses to lower steel and aluminium tariffs below 15% by the end of 2026.
A final vote to approve the transatlantic trade law is expected in mid-June. The swift move is aimed at ensuring the 27-nation bloc can meet Trump's July 4 ratification deadline, thereby protecting millions of jobs in both regions.
