The trade agreement between the EU and the USA can soon be fully implemented. In Luxembourg, EU countries gave the green light to eliminate tariffs on US industrial goods and grant better market access to US seafood and agricultural products. However, a safety net should ensure that the benefits only apply if the USA fully implements its obligations under the agreement. The European Parliament and the states agreed on this after a long struggle.
The approval of all EU countries fell a good week before the 250th anniversary of the USA’s Independence Day on July 4th. A few weeks ago, US President Donald Trump brought up the day as a deadline for implementing the trade agreement and otherwise threatened higher tariffs. The rules will next be published in the EU’s Official Journal and will come into force the day after.
EU sets conditions
Among other things, it is planned that the EU tariff concessions can be suspended again if the USA violates agreements. This could include further tariff increases. In addition, the USA should reduce tariffs on washing machines and other products containing steel to a maximum of 15 percent by the end of the year. If this does not happen, the EU also wants to consider such tariffs.
In addition, a fixed expiry date is planned, December 31, 2029. The EU Commission must comprehensively assess the consequences of the changes by June 30, 2029. She can then also suggest extending the customs concessions.
Stability and predictability
“We are committed to a strong and open transatlantic partnership with our historic ally, but this openness must go hand in hand with safeguarding our interests,” said Cypriot Trade Minister Michael Damianos. Cyprus holds the rotating presidency of the Council until the end of June. “These measures do both things – ensuring stable and predictable trade flows with the US, while ensuring that the EU can respond quickly and proportionately if the agreement is not respected or its interests are at stake.”
A spokesman for the EU Commission said the removal of tariffs on imports from the US would be positive for both sides “as our industries will gain access to a wider and more affordable range of very important imported goods.” The commitment made will be implemented and further areas of cooperation will be examined. As an example, he cited global overcapacity in certain industrial sectors. The Commission is also looking forward to “opening up new areas for possible tariff reductions” with US partners.
Important trading partner
The EU Commission wanted to use the agreement last summer to avert a trade war after threats from the US side. The EU and the United States have extensive bilateral trade and investment relations.
According to EU figures, it accounts for almost 30 percent of global trade in goods and services and 43 percent of global economic output. In 2024, trade in goods and services between the EU and the USA amounted to around 1.7 trillion euros.
