European Union governments cleared legislation on Wednesday to remove import duties on many U.S. goods, an EU source with knowledge of their meeting said, a move that should avert President Donald Trump’s threat of higher tariffs on EU cars and other products.
Under a deal struck at Trump’s Turnberry golf resort in Scotland last July, the EU agreed to remove import duties on U.S. industrial goods and grant preferential access to U.S. farm and seafood produce, while accepting U.S. tariffs of 15% on most EU goods.
Ten months since that framework accord, the EU has still not fulfilled its side of the deal, prompting Trump to say he would impose “much higher” tariffs on EU goods if the EU does not implement its commitments by July 4.
Ambassadors from the 27 EU member nations have now cleared legislation to put in place those import duty reductions. The decision came after negotiators from EU governments and the European Parliament agreed on texts last week that also put in place a range of safeguards in case the Trump administration breaches the trade accord.
The legislation still needs to be approved by the European Parliament. Its trade committee is set to hold an indicative vote next Tuesday, with the decision by the full EU assembly in mid-June.
The safeguards, pushed by EU lawmakers, include a clause to end the trade deal at the end of 2029 and a provision to allow the European Commission to suspend parts of the deal if the United States backtracks on cutting tariffs to 15% on washing machines, wind turbines and other products with high steel or aluminium content. They are currently subject to 25% tariffs.
