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Business News Today: Latest Business News, Finance News

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EU prepares to cut US import duties to avoid Trump tariff...
By Reuters · 2026-05-19 · via Business News Today: Latest Business News, Finance News
US President Donald Trump

US President Donald Trump | Photo Credit: REUTERS

European Union negotiators were expected ​to agree on Tuesday to scrap import duties on ⁠US goods to comply with the trade deal struck with the United States last year and ward off US President Donald Trump’s threat of much higher tariffs.

Under ‌the terms of the deal struck at Trump’s Turnberry golf resort in Scotland last July, the EU agreed to ‌remove import duties on US industrial goods and grant preferential access ‌to US ⁠farm and sea produce. In exchange, the United States ⁠would impose tariffs of 15 per cent on most EU goods.

However, nearly 10 months on, the European Parliament and the Council, the body representing EU governments, still have to agree on ​a legislative text before the ‌EU duty reductions can enter force, with the main divisions over safeguards in case Trump reneges on the agreement.

Negotiators from the parliament and council will meet for what was expected to be a final ‌round of talks starting at 9 p.m. (1900 GMT). EU lawmakers ​involved in the negotiations were confident a deal would be struck late Tuesday or very early on Wednesday.

TRUMP SET JULY ⁠4 DEADLINE

Trump has said he would impose much higher tariffs on EU goods including cars if the European Union did not implement its trade ‌deal commitments by July 4, having earlier threatened to raise tariffs on EU car imports to 25 per cent from the current 15 per cent.

EU lawmakers have twice paused the required legislation after Trump’s threats to impose new tariffs on European allies who did not back his proposed acquisition of Greenland and after the US Supreme Court struck down his global ‌tariffs.

Assuming a deal is reached, then the bloc should meet Trump’s July 4 deadline, ​with a final vote of approval in the European Parliament then expected in mid-June.

EU lawmakers want tougher safeguards, including ⁠a “sunrise clause” under which the EU would only cut duties when the ⁠United States fulfilled its side of the deal, the possibility to suspend the deal if the US breached the terms, and ‌a “sunset clause” to end EU tariff concessions on March 31, 2028.

EU governments have had less appetite for inserting such items, concerned they ​could antagonise the Trump administration and create uncertainty for EU businesses. 

Published on May 19, 2026