The European Parliament and the Council of the European Union have reached an agreement on implementing the European American trade agreement

Xinhua News Agency, Brussels, May 20 (Reporter Ding Ying, Hua Kangyi) Representatives of the European Parliament and the European Council reached an agreement on the legislative proposals related to the EU US trade agreement in Strasbourg, France, on the 20th, agreeing to implement tariff preferential measures on US products exported to Europe, while strengthening relevant safeguard mechanisms to safeguard the interests of the EU and its member states.

The European Parliament announced in a press release on the same day that it has reached a temporary agreement with the Council of the European Union on the legislative text of the EU-US trade agreement, strengthening multiple provisions based on the original proposal of the European Commission to address uncertainty in the EU-US trade relationship and enhance protection for EU industries, agriculture, and small and medium-sized enterprises.

The EU and the US reached a trade agreement in July 2025, which includes the EU suspending tariffs on all US industrial products and establishing a tariff quota system for a large number of US agricultural and food products entering the EU market, in exchange for the US imposing a 15% tariff on most EU goods imported to the US. Due to the tension in European American relations caused by the United States' demand for Greenland, a Danish autonomous territory, and the US Supreme Court's ruling that the Trump administration's large-scale tariff policies are illegal, the EU's approval of the European American trade agreement has been delayed for several months. The European Commission and the majority of EU member states hope to approve the agreement as soon as possible in order to provide certainty for businesses. However, members of multiple political groups within the European Parliament have refused to hastily release the agreement without a safeguard mechanism, demanding the inclusion of multiple safeguard clauses in the agreement to address potential new tariff measures or other unilateral actions by the United States in the future.

The press release stated that according to the interim agreement, the EU's provisions on tariff preferences for US industrial and agricultural products will expire on December 31, 2029, unless extended through new legislation. Prior to this, the European Commission will conduct a comprehensive assessment of the impact of these regulations on EU industry, agriculture, and small and medium-sized enterprises. In addition, if the United States continues to impose tariffs above 15% on EU steel and aluminum derivatives by December 31, 2026, the European Commission will have the authority to suspend relevant tariff preferences towards the United States.

The relevant legislative text is expected to be submitted for a final vote at the European Parliament plenary session in mid June, followed by approval by the European Council. European Commission President von der Leyen said in a social media article on the 20th that he hoped to promote relevant processes as soon as possible.

US President Trump previously threatened to significantly increase tariffs on EU exports to the US if the EU fails to fulfill the agreement by July 4th.