BRUSSELS (AP) 鈥 The European Union approved Wednesday a tariff deal with the United States to cap tariffs on most EU exports at 15%, avoiding a direct clash with President Donald Trump ahead of his .
Fierce debates raged among the 27-nation bloc鈥檚 lawmakers and leaders, jeopardizing the hard-won bargain governing the massive exchange of goods and services across the Atlantic Ocean between two of the world鈥檚 largest economies, now weathering dangerous fallout from the war in Iran.
In the European Parliament, legislators threatened to block the trade agreement that European Commission President Ursula von der Leyen had with United States President Donald Trump at his Turnberry golf course in Scotland, following months of bargaining in the wake of his administration鈥檚 global fusillade of tariffs.
The initiated months more of negotiations over details between Washington and Brussels, just as criticism within Europe of the deal spiked after Trump , a semiautonomous territory of Denmark. He has backed away from the threat, at least for now.
鈥淎 deal is a deal, and the EU honours its commitments,鈥 said the EU executive in a social media post welcoming the agreement.
European lawmakers had successfully insisted on adding protections to the deal in case the U.S. backtracks or wavers on details, said Bernard Lange, the head of the parliamentary trade committee.
鈥淚f there is something going wrong, of course, we are self-confident to act on that,” he said.
Intense negotiations across the EU
The rough outlines of a deal are clear: a 15% tariff cap on most European imports, while tariffs on US industrial goods would be reduced to zero. While the deal burdened consumers and businesses with a tariff increase from the previous average of 4.8%, it also gave businesses certainty so they could plan ahead, a factor credited with helping Europe avoid a recession last year.
With the continued closure of the Strait of Hormuz driving up prices as the war in the Middle East rages on, interest rates and inflation from Latvia to Louisiana, proponents of the EU-U.S. deal argue that settling trade between them is crucial in .
The American Chamber of Commerce in Brussels said in a statement that it was 鈥渞elieved鈥 to see the EU reach a consensus on the deal. 鈥淭he trilogue agreement is a sign that the EU is honouring its commitments under the deal,鈥 it said, allowing Washington and Brussels to 鈥渕ove beyond tariffs鈥 to tackle thorny issues like critical supply chains.
The EU鈥檚 trade negotiator, Maro拧 艩ef膷ovi膷, said the final push to approve the deal came after five hours in 鈥渁n intensive night鈥 of trilogue discussions between the European Council, European Parliament and the EU鈥檚 executive, the European Commission.
He said that when the political agreement is formally adopted by lawmakers in the coming weeks, 鈥渢his outcome will reinforce stability in EU-U.S. trade and open the door even wider to constructive cooperation on many issues of strategic importance.鈥
Doubts linger over deal’s destiny
But there is concern in Europe that the White House may not be able to follow through on the deal after the U.S. Supreme Court this year ruled against the legal authority Trump had used to impose that tax.
This left Trump looking for substitute authorities, and his administration has imposed a 10% tax while investigating trade imbalances and national security issues, to impose new tariffs to make up for lost revenue. In May, that Congress had allowed the president under the law, making the new tariffs 鈥渋nvalid鈥 and 鈥渦nauthorized by law.”
That would potentially include tariffs Trump threatened to levy on EU cars and trucks in a social media post where he also criticized for not 鈥渁s usual鈥 sticking to it, without detailing the source of tensions.
After the EU had pushed the deal through its internal democratic processes, it now awaits a positive reaction from Washington, said Lange, the EU lawmaker.
鈥淭hat鈥檚, of course, a big question mark. I have not my crystal ball here with me,鈥 he said.
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