European Union member states on Thursday gave final approval to a one-year customs agreement reached with the US, allowing it to come into effect before the July 4 deadline set by US President Donald Trump.
The agreement, negotiated between Trump and European Commission President Ursula von der Leyen in July 2025, imposes a 15 percent tariff on most EU exports to the US, while envisaging zero tariffs on US industrial products entering the 27-member bloc.
However, Trump's threats regarding Greenland and a US Supreme Court ruling that annulled many of the president's tariffs caused months of delay. The EU side had therefore not yet completed its portion of the agreement.
The approval by member states removed the final legal hurdle on the EU side, following the European Parliament's approval earlier this month. An EU statement, cited by AFP, said the ratification of the deal "confirms Europe's commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while maintaining the necessary safeguards to protect European economic interests."
Lawmakers added a series of safeguard clauses giving the European Commission the power to suspend the agreement if the US fails to meet its commitments or takes steps that disrupt trade and investment. Parliament also introduced a time limit, meaning the deal will expire at the end of 2029 if not renewed.
"Openness must go hand in hand with protecting our interests," said Cyprus's Minister of Commerce Michael Damianos, whose country holds the rotating presidency. "These measures achieve both, supporting stable and predictable trade flows with the US while ensuring the EU can respond quickly and proportionately when the agreement is not respected or our interests are endangered."
Two legal texts, which remove tariffs on US industrial products and provide preferential access for certain seafood and agricultural products, will officially enter into force one day after their publication in the EU's Official Journal.
