Brussels: The European Union reached a preliminary agreement on Wednesday on the terms for a legislation that would remove import duties on US goods, a key element of the trade pact with Washington. The agreement is likely to help avert the imposition of higher US tariffs on EU products.
According to Qatar News Agency, this internal EU agreement is expected to bring a degree of calm to the world's largest trading relationship, with trade in goods and services totaling around $2 trillion annually. This development follows a week after the US President's visit to China, which included friendly remarks but no substantive progress.
The EU relies heavily on Washington for approximately 20% of its goods exports. However, President Donald Trump is determined to address the goods trade deficit with the EU, which is estimated at over 200 billion dollars, through the imposition of tariffs.
"The EU walks the talk, while defending our interests. Once approved, it'll boost transatlantic stability and cooperation," stated European Commissioner for Trade Maros Sefcovic.
Trump had previously cautioned that he would impose much higher tariffs on EU goods, including cars, unless the bloc fulfills its commitments under the trade agreement by July 4. This includes a threat to increase tariffs on car imports from the bloc to 25% from the current 15%.
The EU is expected to implement the measures before the July 4 deadline, with a final approval vote in the European Parliament anticipated in mid-June.