Good morning. This is Mared Gwyn, writing in the early hours from Brussels.
Even earlier this morning, EU lawmakers and diplomats agreed to implement the controversial trade agreement concluded last summer with the US, after hours of late-night talks in Strasbourg.
Our trade reporter Peggy Corlin writes that despite the breakthrough, which is set to soothe soaring transatlantic tensions, the deal remains fragile as long as US President Donald Trump continues to use tariffs as a tool of political pressure.
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 by 4 July. The deal is also considered heavily tilted towards the US, slashing tariffs on US industrial exports to 0% while keeping a baseline tariff on most EU exports at 15%.
The European Parliament had been pushing for stronger safeguards to shield the deal in the event of further unilateral threats from Trump. In a compromise, a so-called “sunset clause”, which would allow the EU to terminate the deal unless renewed, was included for 31 December 2029 – after Trump is due to leave office.
