European parliament finally approves Trump tariff deal

The European Parliament has given its final approval to implement last July’s tariff agreement with Donald Trump.Facing a threat of increased Tariffs if the deal was not sanctioned by 4 July, MEPs agreed to approve the deal, with two main provisos.The first is a “sunset clause” which will mean the deal expires on 31 December 2029 unless it is renewed.The second sets out “clear conditions” for tariff reductions on products containing some Steel and Aluminium, Tariffs that Trump has imposed under National Security Laws rather than the tariff regime he instituted on “liberation day” last April.Under the deal the US applies 15% on most EU exports, while the EU has cut import duties on some US goods, some agricultural products and a wide range of seafood to 0%.The deal is expected to be formally adopted by EU leaders when they meet in Brussels on Thursday.The European Parliament’s approval came nearly a year after the original deal was agreed at Donald Trump’s Turnberry golf course in Scotland last July, having gone through a democratic process that has baffled the US administration, which put the deal in place stateside immediately last summer.However, relations with the EU soured when the US, under the guise of national security considerations, imposed Tariffs on products with steel or aluminium content, something Brussels has frequently protested against.Under the text of the agreement voted on in the European Parliament on Tuesday, the European Commission will be able to suspend tariff preferences for US goods by 31 December 2026 if the US continues to apply Tariffs on steel derivatives.The commission will report to the parliament on the matter by 1 December.By 30 June 2029, six months after Trump’s presidency is due to end, the commission is now also required by the parliament to conduct an assessment of the impact on EU industry of the 0% Tariffs on US goods for agriculture and small- to medium-sized businesses.MEPs suspended the ratification process twice this year through the international trade committee, first in protest against Trump’s threat to impose higher Tariffs in January, and then over his threat take over Greenland.Although the supreme court in the US has already ruled the 15% tariff at the heart of the deal is illegal, the EU agreed to maintain the agreement in an attempt to achieve stability for businesses and industry.