EU-US Trade Agreement Takes Effect After Yearlong Delay

The EU-US trade agreement entered into force on July 1, 2026, allowing the United States to export industrial goods tariff-free in exchange for a 15% tariff on most European products, averting a threatened 25% tariff. Source: eldiado, infobae

Delays and Approval

The pact, agreed nearly a year ago by European Commission President Ursula von der Leyen and US President Donald Trump, faced two parliamentary blockages. The European Parliament suspended implementation in January after Trump threatened tariffs over European troop deployments to Greenland, and again in February following a US Supreme Court ruling that struck down Trump's global tariffs. Source: eldiado, infobae Approval came only after the EU secured safeguard mechanisms. Source: infobae

Safeguards and Expiry

The agreement includes provisions allowing the EU to suspend the deal if Washington fails to meet commitments, if US imports cause "serious damage" to European industry, or if the US does not reduce steel and aluminum tariffs to 15%. Source: eldiado The pact expires on December 31, 2029—coinciding with the end of Trump's second term—though the Commission may propose an extension. Source: infobae

In parallel, the EU implemented new steel protection measures, reducing tariff-free import quotas by 47% and increasing out-of-quota tariffs to 50%, mainly targeting Chinese steel. Source: infobae