EU Finalizes Trade Deal With US Ahead of Trump Deadline

European Union member states have granted final approval to a tariff agreement with the United States, clearing the way for its implementation before the deadline set by US President Donald Trump.

The agreement, reached nearly a year ago, marks an effort to stabilize transatlantic trade relations and avoid renewed tariff tensions between the world’s two largest economic blocs.

The deal, negotiated between Trump and European Commission President Ursula von der Leyen in July 2025, introduces a 15% tariff on most European Union exports to the United States while removing tariffs on US industrial goods entering the EU’s 27-member market.

The EU had delayed completing its commitments under the agreement amid political and legal disputes, including tensions triggered by Trump’s threats involving Greenland and decisions by the Supreme Court of the United States to overturn several tariff measures.

Trump had given the European Union until June 4, 2026 to formally approve the agreement.

The final approval by member states removes the last legislative obstacle after the European Parliament approved the agreement earlier this month.

The EU said the approval demonstrates its commitment to a transatlantic trade relationship based on stability, predictability, and mutual benefit, while maintaining safeguards to protect European economic interests.

The European Parliament added several safeguards to the agreement, including allowing the European Commission to suspend the deal if the United States fails to honor its commitments or takes actions that disrupt trade and investment flows.

The parliament also set the end of 2029 as the agreement’s expiration date unless both sides agree to extend it.

Cyprus Trade Minister Michail Damianos, whose country holds the rotating EU presidency, said that “openness must go hand in hand with protecting our interests.”

He added that the measures support stable and predictable trade flows with the United States while ensuring the EU can respond quickly and proportionally if the agreement is violated or European economic interests are threatened.

The legal texts implementing the EU’s commitments will officially enter into force one day after their publication in the EU’s Official Journal.

The measures include eliminating tariffs on US industrial goods and granting preferential treatment to selected American seafood and agricultural products entering the European market.