Published on 6/25/2026
The European Union has finally approved the trade agreement with the United States, ending nearly a year of faltering ratification negotiations, in a move aimed at avoiding the outbreak of a transatlantic trade war and adding a measure of stability to economic relations, despite the continuing disagreements between the two sides over customs duties and technology, according to Bloomberg.
On Thursday, the ministers of the member states approved the agreement under which the European Union would cancel customs duties on American industrial goods and some agricultural products, in exchange for setting the ceiling of American duties on European exports at 15%.
The approval of the agreement comes days before the July 4 deadline set by US President Donald Trump, after he threatened to impose additional customs duties on the European Union if it did not go ahead with ratifying the agreement.
Bloomberg believed that the entry into force of the agreement may provide a temporary breathing space for transatlantic trade relations, but it does not end the existing economic tensions, in light of the continuing disputes over American tariffs on steel and aluminum products, and European regulations for the technology sector.
Hard negotiations
The agreement has faced a complicated path since it was initially reached between Trump and European Commission President Ursula von der Leyen last summer, as its ratification faltered more than once within European institutions.
The European Parliament suspended the ratification procedures twice; The first was after Trump’s threats to control Greenland, and the second was after an American court ruling invalidated the global customs tariff system approved by the American administration, according to Bloomberg.
On the other hand, Washington began implementing parts of the agreement before European ratification was completed, which displeased Trump and prompted him to increase pressure on Brussels to speed up the completion of the procedures.
To remove the reservations of a number of member states, the European Parliament introduced amendments to the agreement that included setting a date for its expiration at the end of 2029, in addition to granting the Union the right to suspend its implementation if the United States breaches its obligations.
Postponed disputes
Despite the approval of the agreement, major issues are still pending between the two parties, as Trump previously threatened this month to impose 100% customs duties on French wine and champagne in protest against the digital taxes imposed by Paris.
The two sides also continue their differences over US tariffs on products related to steel and aluminum, in addition to European Union rules regulating the work of major technology companies.
The agreement faces a new test in the coming weeks, with the two sides seeking to reach an agreement on supporting the aircraft industry before the end of a five-year truce that suspended mutual retaliatory tariffs worth $11.5 billion on July 11.
A European Commission spokesman confirmed, according to Bloomberg, the continuation of talks with the US administration to extend the suspension of counter-trade measures between the two sides, in an attempt to prevent the return of the trade dispute between the two largest economic partners in the world.
