Representatives of EU member states and the European Parliament have reached an agreement on implementing the controversial tariff deal with the United States.
The Cypriot EU Council presidency said early on Wednesday that negotiators "have just reached a provisional agreement on two regulations enacting the EU's tariff reductions set in the EU-US Joint Statement."
Under pressure from recent threats by US President Donald Trump, negotiators agreed to eliminate remaining customs duties on US industrial goods and grant US seafood and agricultural products better market access.
"To ensure the effective implementation of the Joint Statement and protect the EU's interests, the co-legislators agreed to strengthen the main regulation by setting up a robust safeguard mechanism," member states said in a statement.
Specifically, the agreement stipulates, among other things, that the EU tariff concessions can be suspended if the US violates the agreement.
"It's been a rocky journey, but it was worth it," said Bernd Lange, chairman of the International Trade Committee and standing rapporteur for the US. "By setting the commitments under the joint statement into law, this regulation becomes part of the EU’s toolkit to improve EU-US relations but also responds to pressure."
Lange said that the impact on Europe's economy would be reviewed on December 31, 2029, stressing that if it became apparent that European companies were being harmed or new imbalances were emerging, the emergency brake would be automatically applied.
Trump and European Commission President Ursula von der Leyen agreed on a tariff deal in August 2025. The two sides agreed on a 15% tariff ceiling for most EU imports, including cars and auto parts. In return, the EU committed to scrapping tariffs on US industrial goods and easing market access for US agricultural products such as pork and dairy.
Trump has since accused the EU of not adhering to the agreement and announced his intention to raise tariffs on cars and trucks imported from the EU to the US to 25%.
Earlier in May, Trump set a July 4 deadline for the EU to implement the trade deal, warning that tariffs would rise to "much higher levels" if the deadline is not met.
Before the changes can take effect, the agreement still needs formal approval from the European Parliament's plenary session and EU member states. This is typically considered a formality. The regulations are expected to enter into force no later than July 4.
