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- INTEREST36.00%-1.00
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- October 23, 20268°
- BIST10010,877-3.06%
- USD49.63+0.05%
- EUR55.70+0.05%
- GOLD4,039.90-0.50%
- INTEREST36.00%-1.00
- BITCOIN81,637+0.39%
- October 23, 20268°
EU finally approves trade deal with US
The European Union has finally approved the trade agreement with the United States, averting a transatlantic trade war for now, though disputes persist.
EU ministers approve trade deal
The European Union (EU) has finally approved the trade agreement with the United States. According to Bloomberg, ministers from member states gave the green light to the deal on Thursday.
The agreement envisions the EU eliminating customs duties on industrial products and some agricultural goods from the US, while the US will limit tariffs on European exports to 15%.
Trump's deadline created pressure
The approval came just days before the July 4 deadline set by US President Donald Trump. Trump had threatened to impose additional tariffs if the EU did not ratify the deal.
Rocky ratification process
The agreement, reached last summer between Trump and European Commission President Ursula von der Leyen, faced many hurdles during the ratification process. The European Parliament (EP) halted the approval procedure twice. The first time came after Trump's threats to take control of Greenland; the second followed a US court ruling that invalidated the Washington administration's global tariff system.
Meanwhile, the US began implementing parts of the agreement before European approval was complete. This angered Trump and increased pressure on Brussels.
Amendments added to the deal
To address the concerns of member states, the EP added two key amendments to the agreement: the pact will expire at the end of 2029, and the EU will have the right to suspend the deal if the US violates its commitments.
Unresolved issues
Despite the approval of the agreement, significant disputes remain between the parties. Trump threatened this month to impose 100% tariffs on French wine and champagne, citing Paris's digital taxes.
Disagreements also continue over US tariffs on steel and aluminum products and EU regulations on big tech companies.
New test: aircraft subsidies
The agreement faces a new test in the coming weeks. The two sides are trying to reach an agreement on subsidies for the aircraft industry under a five-year truce expiring on July 11. This truce had suspended $11.5 billion in mutual retaliatory tariffs.
A European Commission spokesperson told Bloomberg that talks are ongoing with the US administration to extend the suspension of countermeasures. The goal is to prevent the trade conflict between the world's two largest economic partners from flaring up again.
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