EU approves trade deal with US, accepting 15% tariff cap to avoid new tariff war.

The EU has agreed to a trade deal with the US, paving the way for its implementation. Europe will eliminate tariffs on some goods in exchange for keeping the import tariff ceiling on US products at 15%.

June 25, 2569 at 15.01:XNUMX a.m. Bloomberg News reported that The European Union (EU) has formally approved the trade agreement with the United States. Following final approval by member countries on Thursday (June 26), the agreement came into effect, with both sides hoping it will help stabilize trade, despite ongoing economic disagreements on several issues.

Under the agreement, the European Union will eliminate tariffs on certain U.S. industrial and agricultural products, while the U.S. will maintain a 15% tariff ceiling on imports from the European Union, reducing the risk of further trade confrontations.

The enforcement of this agreement is a success after nearly a year of protracted negotiations and ratification processes. Previously, President Donald Trump had threatened to impose additional tariffs on goods from the European Union if the agreement was not approved by July 4th.

The trade agreement between the United States and the European Union began in mid-last year after Trump and Ursula von der Leyen, President of the European Commission, reached an agreement in principle. However, the ratification process has faced several hurdles.

European Union lawmakers have delayed consideration of the agreement twice. The first time was due to Trump's expressed desire to annex Greenland, and the second time was after a US court ruled that the Trump administration's global tariffs were invalid.

The European Parliament finally approved the agreement, after amendments extending its expiration to 2572 and adding a condition allowing the European Union to suspend its enforcement if the United States violates its terms.

Even though the agreement is in effect, trade relations between the two sides remain fragile. Earlier this month, Trump threatened to impose a 100% tariff on French wine and champagne in retaliation for France's digital services tax.

In addition, the two sides have unresolved disputes regarding US tariffs on steel and aluminum products, as well as European Union technology regulations.

Another issue the market is watching closely is the negotiations on aviation industry subsidies, which both sides must reach a conclusion on before the $11,500 billion tariff moratorium expires on July 11.

A spokesperson for the European Commission revealed that discussions with the US government are continuing to extend the suspension of retaliatory trade measures between the two sides and maintain the stability of economic relations.

refer : bloomberg.com

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