EU member states approved a US-EU trade agreement on Thursday that will take
effect after final formalities. Under the deal the EU will remove tariffs on US
industrial goods and some agricultural products in exchange for a 15% tariff cap
on EU exports to the US. The approval ends nearly year-long ratification
deadlock and follows a Trump threat to impose new tariffs if the deal was not
advanced by July 4. A five-year suspension of $11.5bln in retaliatory tariffs
expires on July 11; both sides must resolve the aircraft-subsidy dispute before
then or the pause will lapse. The European Commission says it is discussing
continued suspension of retaliatory measures with the US. Remaining disputes
over metal tariffs and technology regulation could revive bilateral tensions in
coming months.
