The European Parliament approved tariff cuts on US products to avoid a new trade conflict.
JAKARTA – The European Parliament approved import tariff reductions for various products from the United States on Tuesday (16/6), paving the way for the full implementation of the trade agreement between the European Union and the US while avoiding a potential escalation of the tariff war.
As quoted by Reuters, under the agreement, the European Union agreed to remove import duties on a number of US industrial goods. In return, Washington imposed a 15% tariff on most European Union products entering the US market.
Although the agreement was reached nearly 11 months ago, the European Union had not yet implemented the tariff cuts. This prompted Trump to threaten to impose significantly higher tariffs if Brussels failed to take concrete action before 4 July.
The European Parliament’s approval ensures that the European Union can meet the deadline.
The same legislation also extends the tariff-free policy for US lobster imports, which was first agreed during Trump’s first term in office.
“An agreement is an agreement and the EU is delivering its part,” European Commission President Ursula von der Leyen said through social media.
Industry players welcomed the decision, saying it provided greater certainty for businesses.
Volvo Cars Chief Commercial Officer Erik Severinson said certainty over trade policies would help production planning, supply chain management, and investment decisions.
Industry groups in Germany, the European Union’s largest exporter to the US, also supported the move, although US tariffs remain a challenge for businesses. They said it was now Washington’s turn to fulfil all of its commitments under the Turnberry agreement.
Although the move successfully avoided the threat of new tariffs on 4 July, several uncertainties continue to weigh on trade relations between the two sides. On Monday, Trump again threatened to impose a 100% tariff on French wine if the French government did not remove its digital sales tax.
Meanwhile, the US government still needs to establish a new mechanism to implement the 15% tariff on European Union products after the US Supreme Court overturned the previous global tariff policy. The Trump administration is targeting implementation of the new tariff scheme by 24 July at the latest.
The regulation approved by the European Parliament will remain in effect until the end of 2029 and includes several safeguard mechanisms allowing the European Union to suspend tariff concessions if the US violates provisions under the Turnberry agreement.
“This is not the final debate on transatlantic trade, but we have laid the foundation for temporary stability while Trump continues to create chaos,” said Swedish European Parliament member Karin Karlsbro. (DH/ZH)
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