Agreement reached and US-made retaliation avoided. The European Union has given the green light to the implementation of the tariff agreement signed last summer with the United States. The EU’s yes came after months of pressure from President Donald Trump, who had threatened to impose new tariffs – in particular duties on European cars and trucks of 15 to 25% – if the green light did not arrive by July 4th.
The tariff agreement
The announcement came with a note from the EU Presidency: “The Council and Parliament have reached an agreement on the implementation of the tariff provisions of the EU-US Joint Declaration adopted on 21 August 2025”.
The 27 had in fact signed an agreement with Washington last summer, setting duties of 15% on most European goods, but in fact the EU had not yet kept its promise to eliminate duties on most US imports in exchange.
The contents
Parliament agreed to scale back some demands and, notably, the final text gave the United States until the end of the year to eliminate surcharges above 15% on steel components, rather than requiring it as a precondition. However, the final text authorizes the European Commission to activate the suspension mechanism if the United States does not respect its commitments or interrupts trade and investments with the EU, including “discriminating against or targeting EU economic operators”.
The co-legislators also agreed to establish a safeguard mechanism in case tariff preferences granted to the United States result in an increase in imports that would harm EU industry, including the agricultural sector. The Commission may launch an investigation on its own initiative or on the basis of information provided by one or more Member States or by the European Parliament. The Commission will also report to Parliament and the Council on a quarterly basis on changes in the volumes and trade values of U.S. exports of goods covered by this legislation.
On paper, the EU’s green light should allow us to turn the page, after more than a year of transatlantic trade battles. “Maintaining a stable, predictable and balanced transatlantic partnership is in the interests of both parties,” underlined Michael Damianos, Minister of Energy, Trade and Industry of Cyprus, whose country holds the rotating presidency of the EU.
A deal is a deal, and the EU honors its commitments.
I welcome the agreement reached by the European Parliament and the Council on reducing tariffs for US industrial exports to the EU.
This means we will soon deliver on our part of the EU-US Joint Statement, as promised. THE…
— Ursula von der Leyen (@vonderleyen) May 20, 2026
“The EU honors its commitments”
“A deal is a deal, and the EU honors its commitments. I welcome the agreement reached by the European Parliament and the Council on the reduction of customs duties for US industrial exports to the EU. This means that we will soon fulfill our part of the EU-US joint declaration, as promised.” Ursula von der Leyen writes this on
“Europe demonstrates seriousness and reliability, respecting the commitments undertaken and thus aiming to strengthen the economic solidity of the transatlantic partnership. An important step to give economic stability and certainty to our companies that export to the USA. Now it is important to continue working for the rapid entry into force of the agreement”, commented the Foreign Minister, Antonio Tajani.
