An informed European source said that European Union governments approved, today Wednesday, legislation eliminating customs duties on many American goods, in a move aimed at avoiding US President Donald Trump's threat to impose higher tariffs on EU cars and other products.
Under an agreement reached at Trump's Turnberry golf resort in Scotland last July, the EU agreed to eliminate tariffs on American industrial goods and grant preferential access to American agricultural products and seafood, while accepting American tariffs of 15% on most European goods.
About 10 months after the framework agreement, the EU had not fully implemented its commitments, prompting Trump to threaten to impose much higher tariffs on European goods if the bloc did not comply by July 4.
Ambassadors of the 27 member states approved legislation to implement the import duty reduction, after EU government negotiators and the European Parliament reached a text last week that also includes a set of safeguard measures in case the Trump administration violates the trade agreement.
The legislation still requires European Parliament approval, with the trade committee scheduled to hold an indicative vote next Tuesday, while the full Parliament is set to make a final decision in mid-June. The safeguard measures include a clause to terminate
the trade agreement at the end of 2029, and a mechanism allowing the European Commission to suspend parts of it if the United States reverses tariff reductions on products currently subject to 25% duties.
