EU-US Trade Deal

Published on
22/07/2026 – 12:17 GMT+2

The European Union is preparing to accept new tariffs the United States is expected to impose in the coming days over forced labour, as long as they do not exceed the 15 percent cap agreed under the Turnberry agreement, the European Commission said.

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The White House said in early June that it would impose fresh duties on its global trading partners, arguing that insufficient efforts to curb trade in goods produced using forced labour were harming US commercial interests.

The current US tariff regime expires on Friday, and US Trade Representative Jamieson Greer said on Tuesday that implementation of the forced labour duties was imminent.

European officials are closely monitoring the level of the new tariffs, as an EU-US trade agreement signed in July 2025 in Turnberry, Scotland, by US President Donald Trump and Commission President Ursula von der Leyen caps US duties on EU goods at 15 percent.

“Of course we do not agree with the findings on forced labour, and we’ve made that very clear to our United States counterparts,” an EU senior official said.

“But the main objective is to make sure that the agreement is respected and that our companies can benefit from the stability and predictability that was set out there.”

EU rules against forced labour

The Trump administration imposed 10 percent duties on its global trading partners last February after a US Supreme Court ruling declared its 2025 tariffs illegal. Added to the pre-existing Most-Favoured-Nation duties, those tariffs mean the EU is currently paying average duties close to the 15 percent ceiling set by the Turnberry agreement.

However, the current legal basis for the US tariff regime does not allow it to remain in force for more than 150 days – that is, until 24 July – unless Congress approves an extension, which is considered unlikely ahead of the US midterm elections.

As part of its effort to replace the current regime, the US Trade Department launched an investigation under Section 301 of the Trade Act of 1974 into forced labour in global supply chains, which is due to be concluded in the coming days.

“We expect to see some action soon,” Greer said on Tuesday on CNBC. “I can’t really specify a timeline right now – I have a responsibility to brief Congress and other stakeholders before I really reveal that kind of thing. But we do expect action soon on that front.”

In early June, the Commission defended its regulations, saying it had strict rules against products made with forced labour.

“The EU considers tariffs imposed on these grounds to be unjustified,” Olof Gill, the Commission’s deputy chief spokesperson, said in a statement at the time.

And yet, the Commission now appears to consider there is no better option than ensuring the Turnberry agreement is respected.

A year ago, European Commission President Ursula von der Leyen and US President Donald Trump struck a trade deal in Turnberry, Scotland, shaking hands under the spotlight of the world’s media after weeks of trade disputes.

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Defended by the Commission as the best deal it could secure, the agreement imposed 15 percent US tariffs on imports from the EU, while the EU committed to removing its duties on most US industrial products.

The Europeans also pledged to invest €520 billion in the US and purchase €700 billion in US energy by 2028, including liquefied natural gas (LNG), oil and nuclear energy products.

The Turnberry agreement was supposed to draw a line under the dispute. Instead, it opened a new chapter.

Over the past year, Trump has repeatedly threatened the EU with new tariffs, slowing the implementation of the agreement on the European side, where lawmakers froze its ratification. Following negotiations between the EU’s co-legislators, the bloc eventually removed its tariffs on 1 July.

On the US side, the process has been no smoother. The White House had to adopt new tariffs after the US Supreme Court ruled in February 2026 that the duties imposed on US trading partners in 2025 were illegal.

The new tariffs, introduced under a different legal basis, are set to expire at the end of this week, on 24 July, unless Congress extends them – a prospect considered unlikely with the midterm elections approaching.

As the Turnberry deal marks its first anniversary, here are four things to know about the state of transatlantic trade relations.

1. Trade with the US increased in 2025

Despite the tariff war, transatlantic trade has not shrunk. Quite the opposite: EU-US goods and services trade rose by 4.5 percent to €1.8 trillion in 2025, as companies rushed shipments ahead of Trump’s tariffs, offsetting the slowdown later in the year.

Since January 2025, US importers have had to pay around €31 billion in additional duties, compared with €7 billion in pre-tariff years.

Following the Supreme Court ruling, however, some have already been refunded. US data released in mid-July shows that $81 billion was paid back for tariffs imposed globally on the country’s trading partners.

2. Europe is on track to meet its investment pledges

According to the European Commission, the EU will keep its promise to invest massively in the US. In early 2025, it reported that EU companies had pledged €242 billion in investments across various US sectors, including cars, IT, chemicals and food.

Regarding energy investments, an EU senior official said the €700 billion target will be exceeded. The Commission said that, in 2025 alone, EU buyers imported energy products and signed deals worth more than $250 billion.

As the Iran war broke out and the EU phased out Russian gas supplies, purchases of US LNG and oil reached record levels. New nuclear projects will also be carried out in cooperation with US partners.

3. Negotiations continue on exemptions, steel and aluminium

The EU-US trade saga is far from over. Brussels and Washington have started negotiating new tariff exemptions for EU goods. The Turnberry agreement referred to these future discussions, but the White House wanted the EU to implement its side of the agreement before talks could begin.

Last autumn, the Commission, together with European businesses, drew up a list of hundreds of products for which it hopes to restore pre-existing tariff levels. The list, recently transmitted to the US side, covers around €150 billion worth of EU exports and includes iconic products such as Roquefort, olive oil, wines and spirits.

The Europeans also hope to make progress on steel and aluminium. The US still imposes 50 percent tariffs on imports from trading partners worldwide. However, the Commission expects the discussions to be challenging, as the White House wants to bring production back to the US while also dealing with massive Chinese overcapacity.

4. The US is preparing new tariffs

Following the Supreme Court ruling, the White House had to rely on a new legal basis to impose tariffs reaching the 15 percent ceiling set by the Turnberry agreement. But those tariffs expire on Friday, and the US is already looking for new ways to impose additional duties.

European officials therefore expect the White House to introduce new tariffs targeting forced labour and overcapacity following investigations launched under Section 301 of the Trade Act of 1974. The forced labour tariffs have already been announced and are expected to come first, despite the EU arguing that it already has legislation banning forced labour.

“Of course we do not agree with the findings on forced labour, and we’ve made that very clear to our United States counterparts,” an EU senior official said. “But the main objective is to make sure that the agreement is respected and that our companies can benefit from the stability and predictability that was set out there.”

So as long as those future tariffs don’t exceed the 15 percent cap, the EU will not go against them.

The Commission is also closely monitoring a US investigation into German drug pricing under Section 301, which could also lead to punitive tariffs if the US Trade Department finds that “persistent underpayment for innovative pharmaceutical products by Germany is unreasonable or discriminatory and burdens or restricts US commerce”.

Published on
11/06/2026 – 17:25 GMT+2

German MEP Bernd Lange, chair of the European Parliament’s trade committee, has warned that the long-running Airbus-Boeing dispute could jeopardise the EU-US trade agreement struck last summer if transatlantic tensions flare again in the coming weeks.

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The implementation of the Turnberry Agreement, clinched in July 2025 by US President Donald Trump and European Commission President Ursula von der Leyen in Scotland, is entering its final stretch, with EU lawmakers expected to approve it in a vote next Tuesday.

However, the five-year truce between US aerospace giant Boeing and its European rival Airbus over mutual subsidy allegations expires on 11 July, with the Trump administration and the European Commission yet to agree to extend it.

“Will this lead to another escalation? Nobody knows,” Lange, the Parliament’s lead negotiator on the EU-US deal, told journalists on Thursday during a meeting with fellow Socialist lawmakers.

The MEP is concerned that a renewed aerospace dispute could further strain transatlantic trade ties after a year of intense tensions.

“I hope this will not blow up,” Lange told Euronews.

Turnberry deal remains fragile

The battle between Boeing and Airbus dates back more than two decades. The US first brought a case before the World Trade Organization arguing that the EU was illegally subsidising Airbus. Brussels responded with its own complaint, accusing Washington of unlawfully supporting Boeing.

The dispute eventually spiralled into a tariff war, with both sides imposing punitive duties on products ranging from wine and spirits to cheese and tobacco, affecting $11.5 billion worth of trade.

A truce was reached in 2021 under the Biden administration, taking effect on 11 July that year and suspending retaliatory measures for five years. However no extension has been announced since.

“Discussions with the US are ongoing to ensure stability and certainty and to continue the suspension of countermeasures on both sides,” Commission deputy chief spokesperson Olof Gill told Euronews.

In its Trade Policy Agenda 2026, the Trump administration said the US Trade Representative would decide in July “whether to take action in the Section 301 investigation involving the enforcement of US rights in the World Trade Organization disputes involving large civil aircraft”.

The US is able to impose tariffs on trading partners under section 301 of the Trade Act of 1974.

Last week, Washington threatened to impose 10 percent tariffs on EU goods over forced labour following a Section 301 investigation. If implemented, those duties would be added to existing most-favoured-nation tariffs, pushing average US tariffs on EU goods above the 15 percent ceiling agreed under the Turnberry deal.

Under the agreement, which EU lawmakers are expected to adopt next week, the EU committed on its side to eliminate its duties on US goods. However, lawmakers fought hard to include safeguards to protect the deal from future US tariff threats and ensure the 15 percent cap is respected.

The agreement has always appeared fragile. Trump has repeatedly used tariffs as leverage in non-trade disputes, from his push for the acquisition of Greenland earlier this year to his more recent threat to impose 25 percent tariffs on EU cars after German Chancellor Friedrich Merz criticised the war with Iran.

Should the Airbus-Boeing dispute reignite, it could give the US president another pretext to unravel the 2025 agreement.

Published on 27/05/2026 – 12:10 GMT+2•Updated
12:17

One week after EU diplomats and lawmakers agreed to eliminate EU duties on most US industrial goods under the EU-US trade agreement, EU ambassadors on Wednesday greenlit a deal with the European Parliament, paving the way for the full agreement’s formal adoption by the EU Council.

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The procedural step comes as the US pressures Europeans to implement the EU-US deal clinched last summer by US President Donald Trump and European Commission President Ursula von der Leyen after weeks of renewed trade tensions.

Trump has threatened to impose 25 percent tariffs on EU cars if the deal is not enforced by the EU by 4 July.

On their side, MEPs still have to formally endorse the agreement reached on the EU side, with a tentative vote scheduled during the plenary session between 15 and 18 June.

“The agreement we reached with the European Parliament marks an important step in delivering on the EU’s commitments,” said a spokesperson for the Cypriot Presidency, which negotiated with MEPs on behalf of EU member states.

The spokesperson added that “robust safeguards” had been included in the agreement “to protect the interests of European businesses and economic operators”.

The deal, considered lopsided by many MEPs, states that the EU would face 15 percent US tariffs while eliminating its own duties on US goods.

However, after Trump repeatedly threatened to impose new tariffs in breach of the deal, EU lawmakers pushed member states to include conditions such as a “sunset” clause that would terminate the agreement on 31 December 2029 unless renewed.

Under the agreement reached last week, the Commission would also be able to suspend the trade deal at the request of either Parliament or a member state if the US fails to lift tariffs on European steel and aluminium products by the end of 2026.

Published on 20/05/2026 – 2:31 GMT+2•Updated
2:36

Diplomats and MEPs reached an agreement late on Tuesday to implement the contentious EU-US agreement, which eliminates duties on most US industrial goods imported into Europe.

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The negotiations concluded two weeks after US President Donald Trump threatened to impose 25% tariffs on EU cars if Europeans did not implement the agreement — clinched by Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, last summer — by 4 July.

The so-called “Turnberry Agreement,” criticised by MEPs as unbalanced, raises US tariffs on EU goods to as much as 15%.

“The EU and the United States share the world’s largest and most integrated economic relationship. Maintaining a stable, predictable and balanced transatlantic partnership is in the interest of both sides,” Cyprus trade Minister Michael Damianos said, adding: “Today, the European Union delivers on its commitments.”

MEPs had kept the deal frozen for several weeks following Trump’s threats over Greenland earlier this year. They also suspended it after the US adopted new tariffs following a Supreme Court ruling that declared illegal the tariffs imposed by the White House since Trump’s return to power.

Demanding clarity from the Americans, EU lawmakers finally agreed to enter into negotiations with the EU Cyprus presidency — representing EU member states — after the Commission assured them that the US would honour its side of the agreement and cap its tariffs at 15%, as agreed.

Fragile EU-US relations

However, EU-US relations remain fragile and there is concern in Brussels that the US administration could still use tariffs to put political pressure on the EU if the bloc does not comply with the White House’s demands on other issues.

Trump’s threats over EU cars two weeks ago also targeted Germany, whose Chancellor Friedrich Merz has criticised the war in Iran launched by the Americans alongside Israel.

Trump has repeatedly called on European countries to deploy ships to help secure the Strait of Hormuz, a move Europeans have been reluctant to make.

Many disagreements also continue to strain EU–US relations over Ukraine — including the recent US extension of a sanctions waiver allowing purchases of Russian oil — and over NATO, which Trump has repeatedly threatened to leave.

On Tuesday night, MEPs tried to secure the deal by attaching conditions, risking US anger with additional provisions to which Washington had not agreed.

Under the Turnberry Agreement, the EU also committed to investing $600 billion across strategic sectors in the United States through 2028 and to purchasing $750 billion worth of US energy.

Published on
13/05/2026 – 14:02 GMT+2

EU lawmakers have reached a provisional deal to make the EU-US trade agreement suspendable in the event of a market disruption caused by a surge in US imports, Euronews has learned from two sources close to the talks.

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Intense negotiations have been underway between EU governments and the European Parliament over the implementation of the deal, which would cut EU tariffs on US goods to zero, under pressure from the Trump administration.

The US has suggested it will double tariffs on European cars if an agreement to swiftly implement the deal is not approved by the European Parliament by 4 July

MEPs have been pushing for tougher conditions since the agreement was clinched last summer between Trump and European Commission President Ursula von der Leyen, arguing that it must not become a vehicle for extortion of the EU.

The deal sees tariffs tripling on EU goods entering America, although the duties are not stackable, while US industrial goods are reduced to zero. Members of the European Parliament have been delaying a vote to implement the accord, arguing that it needed to be rebalanced and include clauses to protect the EU’s interests.

In recent days, a provisional compromise was found on a safeguard mechanism allowing the EU to reimpose tariffs on US industrial goods if a surge in imports disrupts the European market. The details of the wording of the clause are still under discussion.

Negotiators also agreed in principle to include a “sunset clause” that would automatically terminate the deal unless renewed. Parliament initially sought an expiry date of March 2028, though the final timeline remains under negotiation, the sources said.

‘Sunrise’ clause sparks tensions

However, talks remain at a standstill over a proposed “sunrise clause” defining when the agreement would begin to apply. The EU Parliament wants the implementation date to start only once Washington complies with the 15% tariff cap, while the Commission opposes the condition and wants it done immediately, one source said.

The sunrise clause was introduced by MEPs after a US Supreme Court ruling in February declared the 2025 US tariffs illegal, prompting Washington to introduce new duties on EU goods that now average above the agreed ceiling, therefore in violation of the deal.

The European Commission is also pushing to remove references to the EU’s Anti-Coercion Instrument, seen as the EU’s trade bazooka that could curtail US access to the European single market in unprecedented ways.

The Commission is also pushing back against provisions allowing the suspension of the deal if Trump were to threaten the bloc’s territorial integrity again, one of the source said.

Following Trump’s threats earlier this year to target EU countries refusing to support a US acquisition of Greenland, MEPs also added provisions allowing the suspension of the deal in the event of threats to the EU’s territorial integrity.

The Anti-Coercion Instrument is one of the EU’s strongest market defence tools, designed to counter economic pressure from third countries through measures including restrictions on licenses and intellectual property rights. Its use was repeatedly discussed at the height of transatlantic trade tensions last year, but never approved.

EU negotiators are aiming to finalise the agreement by June ahead of a plenary vote in the European Parliament the same month, in time for the 4 July deadline set by Trump.

Published on
05/05/2026 – 19:06 GMT+2

EU Trade Commissioner Maroš Šefčovič on Tuesday urged the US to honour its side of the EU-US trade deal during a meeting in Paris with US Trade Representative Jamieson Greer.

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Tensions have escalated in recent days over the implementation of the EU-US trade deal reached almost a year ago in Turnberry, Scotland, after US President Donald Trump threatened to impose 25% tariffs on EU cars, in breach of the agreement capping US tariffs on EU goods at 15%.

The agreement was further shaken in February after the White House introduced new tariffs following a US Supreme Court ruling declaring the 2025 tariffs illegal.

A European Commission spokesperson said Tuesday that during the 90-minute meeting with Greer, Šefčovič called for a “swift return” to the agreed Turnberry terms, meaning “a 15% all-inclusive tariff rate.”

The US currently imposes a 10% tariff on EU goods on top of duties already in place before Trump’s return to the White House in 2025, with rates varying across EU products. Combined duties can now reach as much as 30% on certain EU exports, such as cheese, exceeding the 15% cap established in the EU–US agreement.

During the meeting, Šefčovič also updated his counterpart on the EU’s implementation of the agreement, the spokesperson said, “to clarify” where the EU “stands.”

Washington wants Brussels to accelerate the EU legislative process needed to implement the deal, including the bloc’s commitment to cut tariffs on US industrial goods to zero.

But negotiations between EU governments and members of the European Parliament remain tense.

MEPs want to add safeguards that would make EU tariff cuts conditional on the US implementing its side of the agreement. They are also pushing for a “sunset clause” that would terminate the deal in March 2028 unless renewed.

The European Parliament’s position is backed by France, while Germany and other member states want to preserve the original agreement struck in July 2025 by Trump and European Commission President Ursula von der Leyen.

A round of negotiation is scheduled for Wednesday evening.

Published on
04/05/2026 – 14:17 GMT+2

The EU Trade Commissioner Maroš Šefčovič is scheduled to meet his US counterpart Jamieson Greer on Tuesday amid rising tensions between the bloc and the US following President Donald Trump’s announcement of a potential 25% tariff on EU automobiles.

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The discussions, scheduled ahead of a G7 trade ministers’ meeting in Paris, were planned before President Trump’s latest tariff threat, Euronews has learned.

But they now give both sides an opportunity to ease tensions after Trump signalled measures that would breach the EU-US trade deal agreed last summer in Turnberry, Scotland, between Trump and Commission President Ursula von der Leyen, which caps US tariffs on EU goods at 15%.

On Monday, the Commission sought to project a sense of calm.

“It’s not the first time we have seen threats,” Commission spokesperson Thomas Regnier said, adding: “We remain very calm, focused on enforcing the joint statement in the interests of our companies, of our citizens.”

Trump’s threat came after German Chancellor Friedrich Merz criticised the US approach to the war in Iran, and after Washington announced the withdrawal of 5,000 US troops from Germany, further straining transatlantic relations.

German MEP Bernd Lange (S&D), chair of the European Parliament’s trade committee, told Euronews on Monday that Trump’s threats were aimed specifically at German car manufacturers.

“All options remain open”

The US president also accused the EU of moving too slowly to implement the agreement.

“Since day one we are implementing the Joint Statement [the EU-US deal] and we are fully committed to delivering on our shared commitments,” Regnier said, adding that the EU was seeking predictability in the EU-US trade relation.

The Turnberry deal is currently being negotiated between EU governments and lawmakers before it can enter into force on the EU side. Co-legislators must still agree on the modalities for cutting EU tariffs on US goods to zero, as outlined in the agreement.

MEPs have nonetheless introduced safeguards to ensure the EU is not the only party adhering to its commitments and to protect the bloc from future US threats.

The Commission reiterated Monday that if the US takes measures that are “inconsistent” with the trade deal, all “options” remain open.

Last year, during the trade dispute that followed Trump’s return to power, the EU executive prepared a package targeting €95 billion worth of US products, though the measures were later suspended.

At the time, several EU countries also urged the use of the bloc’s anti-coercion instrument, which enables the EU to respond to economic pressure from third countries with a wide range of trade defence tools, including restrictions on licences and intellectual property rights.