EU clears major hurdle to finalize U.S. trade deal
CNBC • • nation
Key Points:
- European Commission President Ursula von der Leyen welcomed a provisional agreement to remove import duties on U.S. goods and urged swift finalization by EU co-legislators.
- The deal includes a safeguard allowing the EU to suspend tariff reductions if U.S. imports harm European industries or if the U.S. maintains tariffs above 15% on EU steel and aluminum by 2026.
- The agreement follows a trade deal struck nearly a year ago at Trump's Turnberry resort, where the EU agreed to scrap tariffs on U.S. industrial goods, and the U.S. capped tariffs on most European goods at 15%.
- The EU aims to meet U.S. President Donald Trump's July 4 deadline to ratify the agreement, with a final approval vote expected in mid-June, avoiding threatened tariff increases on European imports.
- Past delays in EU deliberations were influenced by Trump's Greenland threat and a U.S. Supreme Court ruling limiting his tariff powers.