EU clears major hurdle in finalizing US trade deal

European Commission President Ursula von der Leyen on Wednesday welcomed a provisional agreement on legislation to lift import tariffs on US goods and called on co-legislators to move quickly to finalize the process.

EU lawmakers welcomed the breakthrough after more than five hours of talks overnight and said it could pave the way for the 27-nation bloc to avoid US President Donald Trump’s threat to punish with higher tariffs for further delays.

The agreement includes a safeguard mechanism that would allow Brussels to suspend tariff cuts in the event that US imports harm European industry.

It also allows the European Commission, the EU’s executive branch, to suspend tariff preferences if the US continues to impose a tariff rate above 15% on EU steel and aluminum derivatives until the end of 2026.

The tentative agreement comes nearly a year after the EU and US first signed the trade deal at Trump’s golf resort in Turnberry, Scotland. Under the terms of the agreement, the EU agreed to eliminate tariffs on US industrial goods, while the Trump administration agreed to limit tariffs on most European goods to 15%.

“The deal is a deal and the EU respects its commitments,” the EU’s von der Leyen said. Said Wednesday through X. “Together, we can ensure stable, predictable, balanced and mutually beneficial transatlantic trade.”

EU lawmakers twice halted their deliberations in January after Trump threatened to seize the self-ruled Danish territory of Greenland, and then in February after the Supreme Court rejected a large portion of Trump’s far-reaching tariff agenda.

Earlier this month, the US president said he would give the EU until July 4 to ratify its trade deal with Washington, threatening to raise tariffs to “very high” levels if it failed to do so.

He also promised to increase tariffs on cars and trucks imported from the EU to 25%, accusing them of not adhering to the terms of the so-called “Turnberry Agreement”.

The EU is now expected to meet Trump’s July 4 deadline, with a vote for final approval expected in mid-June.

Zeljana Zovko, lead negotiator in the European People’s Party group on the U.S. trade deal, said Europe has “prevented an escalation of transatlantic trade tensions and protected European companies, investments and millions of jobs on both sides of the Atlantic.” Said On Wednesday.

Bernd Lange, Chief Trade Negotiator of the European Parliament, It has been told The process was a “rocky journey” but one that was worthwhile.

“By enshrining the commitments under the joint statement into law, this regulation becomes part of the EU’s toolkit to improve EU-US relations, but also to respond to pressure,” Lange said in a statement.