EUMember States Back Crucial Compromise to Implement U.S. Trade Deal

The European Union’s 27 member states have formally endorsed a compromise with the European Parliament to implement a trade agreement with the United States.

Issued on: 28/05/2026 – 11:12

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The agreement, finalized in July, places U.S. tariffs on most European products at 15 percent, though President Donald Trump has grown frustrated that the EU has yet to honor its pledge to abolish tariffs on the majority of American imports.

A recent compromise, negotiated by EU capitals and Members of the European Parliament, brings the bloc into compliance with Trump’s July 4 deadline to enact the deal or face new punitive tariffs.

Diplomats gathered in Brussels on Wednesday officially approved the text, which will be formally endorsed by MEPs when they meet in Strasbourg in mid‑June.

The arrangement incorporates safeguards to protect EU tariff reductions should the United States fail to meet its obligations.

These safeguards have been deliberately trimmed from earlier MEP proposals to avoid reigniting tensions with the White House. Notably, a “sunset” clause extending the agreement’s review horizon has been postponed until the end of 2029, after Trump’s term ends.

The agreement also extends the United States until year‑end to drop additional taxes exceeding 15 percent on steel components, rather than making such reduction a prerequisite as some parliamentarians had demanded.

The European Parliament, which repeatedly views the trade pact as unfavorable to the EU, has intermittently suspended the ratification process, especially in response to Trump’s recent assertions about potentially annexing Greenland.

The European Commission continues to defend the tariff pact, stressing the necessity of preserving relations with the EU’s largest trading partner.

(with newswires)

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