EU-US Trade Deal Clinched — Council and Parliament Sign Off on Tariff Implementation Ahead of Trump's July 4 Deadline

The Council of the EU and European Parliament reached a landmark provisional agreement on May 20 to implement the tariff elements of the EU-US Joint Statement struck in August 2025. Under the deal, the EU will scrap tariffs on all US industrial goods, while the US agrees to cap tariffs on most EU goods at 15%. A key safeguard allows the Commission to suspend concessions if the US maintains tariffs above 15% on EU steel and aluminium derivatives past December 31, 2026. The agreement comes under intense pressure from US President Trump's July 4 deadline, backed by threats of 25% auto tariffs if ratification stalls. A full European Parliament ratification vote is expected in mid-June 2026. EU-US bilateral trade exceeds €800 billion per year, making this the most significant transatlantic trade agreement since the failed TTIP negotiations. Germany's auto industry, heavily exposed to US tariffs, welcomed the deal; France and some MEPs raised concerns about insufficient safeguards for strategic sectors.