The European Council has agreed to cut tariffs on US imports as outlined in a controversial trade deal with the USA. Image source: Adobe Stock
The European Council has agreed to cut tariffs on US imports as outlined in a controversial trade deal with the USA. Image source: Adobe Stock

The European Council has agreed to cut tariffs on US imports as outlined in a controversial trade deal agreed in August between the European Commission (EC) and the US administration, Euronews reported on 28 November.

The move came after US trade representatives urged EU states to fast-track the implementation of the deal, which would lead to the EU dropping tariffs to zero on most US industrial goods.

The idea of adding a so-called “sunset clause” – a mechanism that would end the tariff concessions after a period of five years if the deal was not renewed – had sparked a debate among EU countries but did not go ahead, Euronews wrote.

However, the European Parliament is expected to raise the clause in upcoming talks, according to the report.

The council – which represents EU member states – said on 28 November that while it largely supported the tariff-related aspects of the EU-US Joint Statement deal agreed on 21 August, it had introduced key amendments to strengthen the economic oversight and protection of sensitive EU sectors.

It also called on the EC “to continuously monitor the economic effects of the trade liberalisation measures on the EU’s economy and to submit a report on the regulation’s implementation and economic impact to the European Parliament and the Council by 31 December 2028.”

The EU-US trade agreement followed months of negotiations after US President Donald Trump imposed sweeping tariffs on partners worldwide in what he called “Liberation Day” for the USA, Euronews wrote.

Under the deal, the EU would pay 15% tariffs on its exports to the USA, while reducing its own tariffs on most US industrial products to zero.

Although the deal had been widely criticised, the EC had defended it, saying it was the best possible outcome in the face of Trump’s trade stance, the report said.

The European Council also approved a clause allowing the EC to suspend the deal if the USA failed to implement it, as well as a safeguard mechanism enabling the agreement to be temporarily halted if US imports surged and disrupted the European single market as a result of tariff concessions, Euronews wrote.

To finalise the tariff cuts, the EC and European Parliament must agree on a common text by next spring.

According to an EU diplomat quoted in the report, most member states could accept adding the clause, but Germany opposed it.

The head of the Parliament’s trade committee, German MEP Bernd Lange had included the idea of a sunset clause in his report on the deal’s implementation which would form the basis for the European Parliament’s debate, the report said.