The European Union on Wednesday formally signed off on its trade deal with the United States, ending months of negotiations and pressure from Washington aimed at avoiding a tariff dispute between the two sides.
Earlier this month, U.S. president Donald Trump warned Brussels to approve the agreement by July 4 or face sharply higher tariffs, accusing the EU of moving too slowly to complete the process.
“A deal is a deal, and the EU honours its commitments,” European Commission president Ursula von der Leyen said after Wednesday’s approval.
The agreement, first reached in August 2025 between Trump and von der Leyen in Turnberry, Scotland, will govern trade between the economies, which exchange more than $1.5 trillion in goods and services every year.
Under the deal, the United States will impose a general 15% tariff on most European exports, while the EU will remove duties on American industrial products and expand preferential access for selected U.S. agricultural and seafood goods.
The European Commission, the Council of the EU, and the European Parliament also agreed on safeguards allowing Brussels to freeze or cancel the deal if Washington breaks its commitments or introduces new measures seen as harmful to European businesses.
The agreement is due to remain in force until December 2029, with the possibility of an extension.
Trump’s pressure campaign came as parts of his wider tariff policy faced legal setbacks in the United States. However, tariffs on cars, steel, and aluminum remain untouched by those rulings, and Trump had previously threatened to raise duties on European cars to 25%.
The car sector is expected to be one of the hardest hit by the deal. European manufacturers—especially German carmakers—avoided a worse outcome, but the new 15% import tax will still increase costs for companies already struggling to compete with cheaper Chinese vehicles.
Countries including Germany, Slovakia, Czech Republic, and Hungary are considered particularly exposed because so much of their economy depends on car manufacturing and parts production.
Agriculture remains one of the biggest sticking points in the agreement. Brussels agreed to wider access for some American products, including lobster, seafood, and selected agricultural goods, while trying to protect key European farming sectors from heavier competition.
The deal has also exposed divisions inside the EU, with some governments prioritizing stable access to the U.S. market while others worry about the long-term impact on European industry and farming.
For now, Brussels has reduced immediate trade tensions with Washington, although uncertainty remains over how long the arrangement will last.
