EU Approves US Trade Deal to Avert 25% Car Tariffs as June Vote Still Unclear
Updated
Updated · Euronews · May 20
EU Approves US Trade Deal to Avert 25% Car Tariffs as June Vote Still Unclear
18 articles · Updated · Euronews · May 20
Late Tuesday, EU negotiators and MEPs agreed to implement the Turnberry trade deal, clearing the way to scrap duties on most US industrial goods entering Europe.
Trump’s threat to impose 25% tariffs on EU cars by July 4 forced the breakthrough, after the Commission assured lawmakers the US would cap broader tariffs on EU goods at 15%.
The compromise lets the Commission suspend the pact—if Parliament or a member state requests it—should Washington fail to lift steel and aluminium tariffs by end-2026.
MEPs had frozen the deal for weeks over Trump’s pressure tactics and later US tariff moves, and some still say the safeguards were weakened, leaving the June plenary vote uncertain.
The accord remains politically fragile as Brussels fears Washington could keep using tariffs for leverage; it also commits the EU to $600 billion of US investment and $750 billion of US energy purchases through 2028.
How will the new 25% tariff on European cars ultimately affect prices for American consumers?
What new strategies can Europe deploy to protect its industries from unpredictable US trade actions?
Amid constant trade threats, how are businesses rebuilding their supply chains to reduce risk and ensure survival?