The European Union reached a tentative agreement on Wednesday on legislation aimed at removing import tariffs on U.S. goods. It was a key part of the trade deal reached with the United States last July. The move is expected to allow the EU to avoid higher tariffs on its products imposed by U.S. President Trump. Trump previously threatened to raise tariffs on European cars from 15% to 25% because the EU did not move quickly enough to implement the agreement signed nearly a year ago.
This has brought the relationship between the EU and the United States to a freezing point. The European Commission said the EU would retain the option of taking measures to protect its interests if Trump follows through on his threat to raise tariffs.
The EU parliament earlier approved the deal but added several amendments to the bill. These include that the agreement will not be implemented until the United States fulfills its commitments, and that the agreement will expire in March 2028 unless both parties agree to an extension.
The final version of the bill must be unanimously approved by the European Parliament, the European Commission and the European Council representing the 28 member states of the EU. Once the three bodies agree on the wording of the text, a vote will be held.