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The EU approves the trade agreement with the US to avoid Trump’s new tariffs.

The European Union has reached a provisional agreement to implement the Turnberry trade pact and avert the tariff threats promised by Trump by July 4th, eliminating duties on many US products in exchange for a 15% cap on European exports, with safeguard clauses and an expiration set for 2029.

After months of tensions and delays, the European Union last night reached a provisional agreement to implement the trade pact signed last summer with the United States in Turnberry.

The compromise should prevent the tariff increases threatened by Donald Trump – particularly on European vehicles – and restore some stability to the planet’s most important trade relationship.

However, what has been adopted is a text with numerous safeguard clauses, strongly demanded by the Parliament to protect against possible future American unfair practices.

A long and bumpy negotiation

The Turnberry agreement, reached last July between Trump and Ursula von der Leyen, provided that the EU would eliminate tariffs on many industrial goods and some US agricultural products, while Washington committed not to exceed 15% on European exports.

As Reuters writes, however, the Parliament and EU governments have repeatedly slowed the process: first due to American threats over Greenland, then after the US Supreme Court ruling that questioned much of Trump’s tariff strategy.

The turning point came in recent weeks, when the American president set the July 4 deadline, threatening 25% tariffs on European cars.

“The EU has once again shown to be a reliable trading partner that respects its commitments,” said Commissioner Maroš Šefčovič, as reported by the Financial Times.

What the final compromise entails

The text resulting from over five hours of negotiation between Parliament, Council, and Commission maintains the Turnberry framework but adds important protections.

Europe will proceed to remove tariffs on numerous American industrial goods and grant preferential access to certain agricultural and fishery products, including US lobster – a symbolic but politically significant concession. In exchange, the United States should apply maximum tariffs of 15% on most European goods.

However, as Politico points out, American tariffs on steel and aluminum remain in many cases at 50%, well above the agreed level. For this reason, the compromise includes a Commission review by the end of 2026: if Washington has not reduced those tariffs, the EU may consider suspending the entire agreement.

Protections requested by Parliament

One of the most debated points was the “sunset clause”: the agreement will automatically expire in December 2029, almost at the end of the next American presidential term.

The Parliament also secured rapid suspension mechanisms in case US imports cause serious damage to European industry, activatable by the Commission or at the request of at least three member states.

Bernd Lange, chair of the Parliament’s Trade Committee and chief negotiator, expressed satisfaction with the outcome: “We have introduced – Lange said, as reported by France 24 – a suspension mechanism if the US does not comply with the agreement, constant monitoring of the economic impact, provisions against unjustified tariffs, and a strong role for Parliament.”

The tougher demands fell through, including automatic suspension in case of violation and especially the clause that would have linked the agreement to any threats to the EU’s territorial sovereignty.

Reactions and internal divisions

The European People’s Party pushed firmly to close the matter quickly. Željana Zovko, the group’s negotiator, emphasized that the agreement “will save our businesses and give them breathing room to continue trading with the most important partner.”

Von der Leyen also welcomed the result with optimism, speaking of “stable, predictable, balanced, and mutually beneficial” trade.

However, other groups sent mixed signals. Liberals and the left remain critical of an agreement they consider too skewed in favor of the United States and may vote against it.

The decisive vote is expected at the plenary session from June 15-18 in Strasbourg. In the Council, where approval now seems a formality, Sabine Weyand described the process as “downhill,” according to Politico.

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