European parliament finally approves Trump tariff deal

The European Parliament has approved a tariff agreement with the US, nearly a year after it was initially proposed. This approval comes just days before a July 4th deadline, avoiding the threat of increased US tariffs. The deal includes a sunset clause, meaning it expires on December 31, 2029, unless renewed, and sets conditions for tariff reductions on steel and aluminum products. Under the agreement, the US applies a 15% tariff on most EU exports, while the EU has reduced duties on certain US agricultural products and seafood to 0%. The European Commission can suspend tariff preferences if the US continues to apply tariffs on steel derivatives, with a report due to Parliament by December 1st. The Parliament also mandated an assessment of the impact of 0% tariffs on US goods by June 30, 2029.

The European Parliament has approved cuts to import duties on many US goods, fulfilling the EU's commitment under a trade deal agreed upon last July. This action aims to prevent a new round of tariff conflict with the United States. The framework deal, struck at Trump's golf course in Scotland, stipulated that the EU would remove duties on US industrial goods in exchange for the US imposing 15 percent tariffs on most EU goods. The EU's delay in implementing these duty cuts prompted US President Donald Trump to threaten significantly higher tariffs if action was not taken by July 4.