In the face of increased US customs duties, the European Union managed to reach a provisional agreement with Washington on Tuesday night. This compromise was reached under pressure after several weeks of tense negotiations with US President Donald Trump.
This agreement was reached under the threat of American customs sanctions. On the night of Tuesday to Wednesday, May 20, the European Union reached a provisional agreement on the elimination of customs duties on certain American products. Brussels aims to comply with the trade agreement signed last year with the United States and, above all, to avoid the tariffs threatened by President Donald Trump, who threatens to impose significantly higher taxes.
The American president had given the EU until July 4, the day that marks the 250th anniversary of American independence, to ratify the agreement negotiated last summer in Turnberry, Scotland. He had threatened the EU to increase customs duties on European cars and trucks from 15% to 25%.
As part of the agreement with Washington, the EU committed to removing most of the customs duties applied to American products. In return, the tariffs imposed by President Donald Trump on European products will remain capped at 15%.
However, the text underwent intense negotiations in the European Parliament. Several members of the European Parliament demanded stricter safeguards in order to suspend the benefits granted to American exporters if Washington did not uphold its commitments. Ultimately, these requirements were revised downwards. The United States will have until the end of the year to remove certain tariffs on steel components.
Another sensitive point was the “sunrise” and “sunset” clauses, which conditioned the entry into force and duration of the agreement. The first was eliminated, while the second was extended until the end of 2029. Despite recent tensions between Brussels and Washington, particularly related to American positions on Greenland or the war in Iran, European Commission President Ursula von der Leyen assured that the EU would uphold its commitments to preserve its relationship with its main trading partner.
