economy
EU approves US trade deal to avert Trump tariffs
The European Union approved legislation to enact its trade deal with the United States on Tuesday, more than two weeks before President Donald Trump would have imposed higher tariffs on the 27-nation bloc if the pact hadn’t taken effect.
TL;DR
- The European Union approved legislation to enact its trade deal with the United States.
- This averted President Trump's threatened higher tariffs on the 27-nation bloc.
- European lawmakers had until July Fourth to finalize their side of the deal.
- Otherwise, Trump would have imposed 25% tariffs on EU car imports.
- The U.S.-EU framework agreement was reached last July.
- The EU agreed to eliminate tariffs on U.S. imports entirely.
- The U.S. lowered its tariff rate on the EU to 15%, affecting most EU goods, particularly European cars and auto parts.
- The U.S. implemented its half of the agreement last fall.
- Trump had threatened to hike tariffs to 25% in May after the EU slowed the deal's effectuation.
- Most lawmakers in the European Parliament voted in favor of the legislation.