EU-US Trade Deal Formalized
EU Council Gives Final Approval to US Tariff Deal, Implementing Safeguards Before Deadline
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Key Points
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The EU regulations implementing the tariff commitments will be published in the EU Official Journal and come into force the day after publication.
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The measures are linked to the EU-US Joint Statement of Aug. 21, 2025, with two regulations associated to that framework, completing the bloc's legislative process.
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Cyprus' commerce minister Michael Damianos emphasized balance in a quote: 'Openness must go hand in hand with safeguarding our interests,' highlighting a push to protect EU interests alongside the open transatlantic deal.
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A safeguard allows the European Commission to suspend tariff preferences if Washington fails to reduce tariffs on steel and aluminum derivatives to 15% by end-2026.
The EU Council gave final approval on June 25 to legislation fulfilling Europe's side of its trade deal with the United States, meeting a July 4 deadline set by President Donald Trump Le Monde. The regulations will be published in the EU Official Journal and take effect the following day, formally launching a framework that governs a trading relationship worth roughly $2 trillion annually Daily Sabah.
Trump had warned in May that missing the deadline would trigger "much higher" tariffs. The European Parliament passed the implementing regulations on June 16 by a vote of 440 to 151 Fashion Network.
What the Deal Actually Removes and Caps
On the EU side, import duties on a wide range of US industrial goods drop to zero. That includes machinery, car parts, and select agricultural products like pork, bison, and tree nuts Le Monde. Preferential access for US seafood also expands, with processed lobster among the covered items.
In return, the United States caps tariffs on many EU exports at 15%. That cap took effect as early as September 1, 2025, when Washington began applying the ceiling to incoming European goods Daily Sabah. The deal replaces no formal treaty — it is built on the EU-US Joint Statement published on August 21, 2025.
Built-In Safeguards Protect Against US Backsliding
The agreement includes a hard trigger tied to steel and aluminum. If Washington does not cut tariffs on steel and aluminum derivatives to at least 15% by December 31, 2026, the European Commission can suspend the deal's benefits entirely Fashion Network. Parliament and member states insisted on this clause before agreeing to move forward.
A sunset clause ends the whole agreement on December 31, 2029, unless both sides agree to extend it. The Commission must also conduct a full review by June 30, 2029. If the deal is judged harmful to EU small businesses, it will not be renewed Le Monde.
Turnberry Roots and a Year of Diplomatic Turbulence
Trump and European Commission President Ursula von der Leyen struck the original framework at the Turnberry Golf Resort in Scotland on July 27-28, 2025. That meeting produced a joint statement aimed at avoiding a 25% tariff on European cars Daily Sabah. But EU implementation stalled for months — first due to the Greenland Crisis in early 2026, then due to legal uncertainty around US tariff actions.
The Trump administration grew impatient. On May 7, Trump posted on Truth Social demanding Europe act by July 4 or face steeper duties. Cyprus's commerce minister Michael Damianos, speaking for the EU Council, framed the outcome as a balance of goals: "Openness must go hand in hand with safeguarding our interests" Fashion Network.
Steel Tariffs and Digital Rules Still Divide the Two Sides
The deal does not resolve everything. Metals tariffs above certain quotas — up to 50% on excess steel and aluminum — remain largely untouched by this framework Le Monde. Industry groups in the steel sector say they are watching the December 2026 trigger deadline closely.
Digital regulation is another open front. The EU's rules on tech platforms remain a source of friction with Washington, and officials on both sides left those disputes out of this package entirely. Trump has also left open the possibility of new tariffs if implementation stalls, meaning the July 4 approval ends one chapter but not the broader trade tension Daily Sabah.
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