EU gives final approval to US trade deal, set to take effect before Trump's given deadline

EU states gave their final nod on Thursday (June 25) to a year-old tariff-pending deal with the United States. The deal is set to enter into force before the July 4 deadline marked by President Donald Trump. Trapped between Trump and EU chief Ursula von der Leyen in July 2025, the development sets levies of 15 per cent on several EU exports to the United States, along with zero tariffs for US industrial goods coming into the 27-nation bloc.

However, the European Union had not yet completed its part of the agreement, as months of delays were triggered by Trump's remarks regarding Greenland and a US Supreme Court ruling that invalidated several of his tariffs. The latest approval from EU member states, which had previously endorsed the deal in principle, removes the bloc's final legislative obstacle after the European Parliament backed it earlier this month.

"The deal's approval confirms the EU's commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guardrails to protect European economic interests," an EU statement said. Lawmakers also incorporated several protective measures into the agreement, including granting the European Commission authority to suspend the pact if the United States fails to honour its obligations or takes actions that undermine trade and investment ties.

Parliament also came up with an expiration date of end-2029, until and unless the agreement is renewed by then. "Openness must go hand in hand with safeguarding our interests," said Michael Damianos, the commerce minister for Cyprus which holds the EU's rotating presidency. "These measures achieve both, supporting stable and predictable trade flows with the US while ensuring the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake," he added.