Europe’s parliament has agreed to cut duties on many American goods to avoid a fresh round of retaliatory tariffs from the Trump administration.

The trade deal, which took effect July 1, sets 15% tariffs on most exports to the U.S. and zero tariffs on industrial goods coming from the U.S. into the 27-nation European Union.

The agreement was originally reached a year ago. However, the U.S. Supreme Court’s February decision declaring many of the Trump administration’s wide-ranging, open-ended tariffs illegal, combined with the president’s threats to take Greenland by force, slowed Europe’s approval. President Donald Trump had threatened to slap additional tariffs on E.U. goods if the agreement wasn’t approved by July 4.

EU officials lauded the deal for giving the bloc the predictability it needed. The agreement expires at the end of 2029. In a statement, the E.U.’s international trade committee chair, Bernd Lange, said the agreement was good for the bloc.

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