In a negotiation against the clock, the Council of the European Union and the European Parliament reached a provisional political agreement this morning to implement the tariff measures included in the Joint Declaration with the United States.
In practice, this crucial legislative step unblocks the ratification process – which had remained frozen by the European Parliament since February – and seeks to definitively deactivate the escalation of trade tensions due to the expiration of the deadlines imposed by the administration of Donald Trump. The agreement reached complies with the political framework initially agreed in Turnberry (Scotland) between the American president and the president of the European Commission, Ursula von der Leyen, last summer, and avoids new punishments, which is what the White House was threatening.
The original pact established a maximum tariff of 15% for most EU exports to the US, covering key sectors such as automobiles, semiconductors, wood and pharmaceutical products. In exchange, the Twenty-seven agreed to reduce tariffs on American industrial goods to zero and grant preferential access to a wide range of agricultural and fishery products, including seafood such as lobster.
A shield of protection: safeguard clauses
Despite the progress made tonight, the path has not been free of mutual distrust. Parliament froze ratification last February after Trump revived global tariff threats of 15% and hinted at retaliation against countries that “played” with the rulings of his own Supreme Court, which temporarily struck down some of his retroactive tariffs.
To overcome this climate of instability, European negotiators have strengthened the legal text by now introducing strict defense mechanisms. Among them, a reinforced suspension clause stands out that directly empowers the Commission to immediately withdraw the tax advantages if Washington fails to comply with the agreement.
Likewise, an expiration clause has been established (sunset clause) that limits the validity of the main agreement until the end of 2029 (reviewable only through an exhaustive subsequent impact assessment) and an agricultural and industrial protection mechanism against possible avalanches of harmful imports.
Firmness and the need for legal certainty in the face of the White House’s unpredictable turns have marked the statements of European leaders during the process and is what has now led, with sweat and wear, to the final agreement. “The current situation is not conducive to delivering ‘fair, balanced and mutually beneficial’ transatlantic trade and investment. The Commission will always ensure the full protection of the interests of the European Union. EU exporters must have fair treatment, predictability and legal certainty. A deal is a deal,” the Commission said in an official statement, justifying the delays.
“Any country that wants to play games with the Supreme Court’s ridiculous decision, especially those that have defrauded the US for years, and even decades, will face a much higher tariff. Worse than the one they recently agreed to. Let buyers beware,” Donald Trump had threatened, in a message that forced the temporary paralysis of the negotiations in Brussels.
What’s at stake
The urgency to ratify the pact responds to the strategic weight of the transatlantic relationship, described as the largest commercial alliance on the planet. According to EC data, trade in goods and services between both powers reached 1.6 trillion euros, with accumulated bilateral investments exceeding 5.3 trillion euros and a daily flow of goods of more than 4.2 billion euros crossing the Atlantic.
With the provisional green light of the European trilogues, EU importers and consumers estimate savings close to 5,000 million euros annually in customs duties.
The final text must now be submitted for final formal approval by the plenary session of the European Parliament and the Member States in the Council in mid-June, defusing the latent threat that Trump would raise tariffs on European cars from 15% to 25% if the Union did not implement its part before the deadlines.
