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EU lawmakers approve implementation of US tariff deal
🇩🇪 Germany /Economy & Trade

EU lawmakers approve implementation of US tariff deal

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News From a news agency Approved/passed
  • The European Parliament approved a controversial trade deal with the United States, removing tariffs on U.S. industrial goods and improving market access for U.S. seafood and agricultural products.
  • The deal includes a safeguard mechanism allowing the EU to suspend benefits if the U.S. fails to uphold its commitments, such as avoiding new tariff hikes.
  • The agreement sets a firm expiry date of December 31, 2029, and requires confirmation from the Council of the EU, with an intended effective date of July 4.

The European Parliament has cleared the path for the full implementation of a contentious trade agreement with the United States. Lawmakers in Strasbourg voted overwhelmingly to abolish tariffs on U.S. industrial goods and grant improved market access to American seafood and agricultural products. This decision aims to normalize trade relations after periods of tension.

A crucial safeguard mechanism is embedded within the deal. This provision ensures that U.S. benefits under the agreement are contingent upon the U.S. fully meeting its obligations. The EU reserves the right to suspend concessions, such as previous tariff increases, if the U.S. violates agreed-upon terms. Furthermore, the U.S. is expected to reduce tariffs on steel-containing products, including washing machines, to a maximum of 15 percent by the end of the year. Failure to comply could prompt the EU to review similar tariffs.

we must examine closely in July which tariffs the USA wants to impose depending on the product.

— Bernd LangeBernd Lange, chair of the European Parliament's trade committee, stated the need for careful review of future U.S. tariff decisions.

The agreement establishes a definitive end date of December 31, 2029. For the regulations to take effect, approval from the Council of the EU is also necessary. Representatives from both EU member states and the Parliament have agreed on a target implementation date of July 4. This date was notably put forward by former U.S. President Donald Trump as a deadline for the trade deal's fulfillment.

Concerns linger regarding potential U.S. tariff actions. Earlier in June, the U.S. threatened tariffs on the EU, citing insufficient action against forced labor imports. The European Commission has refuted these claims. Bernd Lange, chair of the European Parliament's trade committee, suggested the U.S. actions might stem from a search for a new legal basis for its trade policies, particularly after the U.S. Supreme Court invalidated key aspects of previous tariffs. The U.S. government is also investigating whether structural overcapacities among trading partners harm the U.S. economy, which could lead to further tariffs.

If the agreed 15 percent is exceeded, the EU will initiate an investigation and a dialogue to re-establish the tariffs.

— Bernd LangeLange explained the EU's planned response if the U.S. fails to adhere to agreed-upon tariff rates on certain products.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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