EU agrees on reinforced suspension provisions, sunset clause

Trump threatened ‘much higher tariffs’ if EU duty cuts not implemented by July 4

USTR warns EU must also address non-tariff barriers

Agreement should usher in cuts by end of June

The European Union struck a provisional agreement on Wednesday on legislation to remove import duties on U.S. goods, a key ​part of a trade deal reached with Washington in July that could stave off higher U.S. tariffs on EU products.

But the United States said it was still ‌reviewing certain amendments included in the legislation and stressed Brussels also needed to address non-tariff barriers identified in the deal struck at U.S. President Donald Trump’s golf resort in Scotland last July.

Under that deal, the EU agreed to remove import duties on U.S. industrial goods and grant preferential access to U.S. farm and seafood products, while accepting U.S. tariffs of 15% on most EU goods.

Nearly 10 months after that framework accord, the European Parliament and the Council, the body ​representing EU governments, agreed on a legislative text to allow the EU duty reductions to come into force.

After five hours of negotiations, they also agreed on reinforced provisions to suspend ​the concessions in case Trump reneges on the agreement and a sunset clause to terminate the deal at the end of 2029 unless there ⁠is new legislation to renew it.

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