US-EU Trade: European Parliament votes to approve tariff deal struck with US last year

[00:00:00]The European Parliament has backed the implementation of a tariff deal with the United States, paving the way for the EU to cut duties on many American imports.

[00:00:09]The vote marks the final political step needed to implement an agreement reached July last year. Under the deal, the EU will remove tariffs on many American industrial goods and expand access for US farm products. The move comes at a 4th July deadline set by Donald Trump, who had threatened higher tariffs on European vehicles if the agreement was not ratified.

[00:00:36]And William Denslow is tracking this story for CNN. He joins us live from Brussels. William, tell us about this vote that has passed the European Parliament.

[00:00:49]>> Well, this vote really is seen as a long time coming. Of course, you rightly mentioned that July date last year when Ursula von der Leyen, the European Commission president, alongside the US President Donald Trump, shook hands in Turnberry, Scotland, to agree this framework trade agreement. As you mentioned, it would essentially wipe out tariffs on US goods coming over to Europe, would cap largely EU exports going the opposite direction at 15%.

[00:01:18]However, after that, there were that tumultuous period in transatlantic relations, especially after US threats to take over Greenland, threatening tariffs on several EU member states as a result of that spat. That triggered the European Parliament to put the brakes on ratifying this deal, and calling for lawmakers and there were calls from lawmakers to increase more safeguards to this deal, essentially to provide Europe with greater protections. That is what has now been voted upon and agreed by the European Parliament. Things like a sunset clause, essentially meaning that by the end of 2029, this deal will expire. Also, more safeguards should the US threaten tariffs in the future, the EU will have more tools to essentially uh block this deal or uh increase some trade defense mechanisms for itself.

[00:02:10]This is all part of uh providing more protection, more balance as far as EU lawmakers are concerned. But, overwhelmingly, and we've heard from Ursula von der Leyen echoing this point, they say this is about providing a degree of stability for businesses uh on both sides of the Atlantic. And of course, crucially, as you rightly say, this comes just days before that self-imposed deadline set by US President Donald Trump.

[00:02:37]>> All thanks uh William Denselow covering the story for CNN for us from Brussels.