EU agrees to lift tariffs on US agricultural products to avoid new Trump tariffs

EU countries have agreed on legislation to eliminate import duties on a number of US goods, including agricultural and fish products from the US, Reuters reported, citing an EU source.

The decision was part of a trade deal concluded last year between the EU and the administration of US President Donald Trump.

Under the deal, the EU is to eliminate duties on US industrial goods and provide preferential access for agricultural and fish products from the US. In return, Washington agreed to reduce duties on most EU goods to 15%.

Reuters notes that the EU has been delaying its part of the deal for almost ten months. Because of this, Trump has threatened to impose “much higher” duties on European cars and other goods if the agreements are not fulfilled by July 4.

Ambassadors of the 27 EU countries have already agreed on the necessary legislation. Before that, negotiators from EU governments and the European Parliament agreed on protection mechanisms in case the US violates the terms of the trade agreement. The document still needs to be approved by the European Parliament. A vote by the relevant committee is expected next week, with a final decision in mid-June.

Among the safeguards that MEPs insisted on were the possibility of terminating the agreement at the end of 2029, as well as the right for the European Commission to suspend certain provisions if the US does not reduce tariffs on goods with a high steel and aluminum content, including wind turbines and washing machines.

Tags: EU, agricultural products, USA, duties