The European Union has struck a provisional agreement to eliminate import duties on U.S. goods, a critical step toward finalizing the transatlantic trade deal reached last July at Donald Trump’s Turnberry resort. The legislative breakthrough between the European Parliament and the Council likely averts a looming trade war.

Under the original framework, the EU agreed to remove tariffs on U.S. industrial goods and provide preferential access for American agricultural and seafood products. In return, the U.S. capped tariffs on most EU goods at 15%. However, progress stalled as EU lawmakers twice paused legislation following standard tariff disputes and Trump’s threat to raise levies on European cars to 25% if the EU missed a July 4 deadline.

While EU governments debated stricter measures, such as introducing Sunrise and Sunset clauses for the deal and a suspension mechanism if the US breaches the term, these were subsequently abandoned to avoid antagonizing Washington. The compromise establishes a stable framework. European Commission President Ursula von der Leyen welcomed the breakthrough, urging swift finalization to ensure “stable, predictable, and mutually beneficial transatlantic trade.”

With a final European Parliament vote scheduled for mid-June, the EU is now on track to implement the duty cuts by the end of June, successfully meeting Trump’s July deadline.

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Source: https://www.reuters.com/business/eu-prepares-cut-us-import-duties-avoid-trump-tariff-hike-2026-05-19/