Markets 
Published on •Updated
European Parliament and EU countries are gearing up for the final stretch of the EU-US trade deal negotiation, in crunch talks amid growing pressure from Donald Trump’s administration.
On Tuesday at 9 pm, in the Parliament in Strasbourg, lawmakers and diplomats are set to discuss again the implementation of the deal, which would cut European tariffs on US goods to zero and set a 15% cap for American tariffs on European products. Time is running out, as the deal should be finalized before June to be approved by the Parliament’s next plenary session the same month and comply with Trump’s deadline.
After a call with European Commission President Ursula von der Leyen last week, the US president said he would give the EU until 4 July to implement its commitments, before he raises tariffs on EU goods, including cars, to “much higher levels.”
Parliament and Council have in the meantime reached a provisional deal to make the trade agreement suspendable in the event of a market disruption caused by a surge in US imports, but other details remain to be fixed, and political groups are not fully aligned.
In particular, the so-called “sunrise clause”, which defines when the agreement would begin to apply. The EU Parliament wants it to start only once Washington complies with the 15% tariff cap, while the Commission and several member states prefer it to kick off immediately.
The sunrise clause was introduced by MEPs after a US Supreme Court ruling in February declared the 2025 US tariffs illegal, prompting Washington to introduce new duties on EU goods that now average above the agreed ceiling, therefore in violation of the deal.
MEPs also want the EU to be able to suspend the deal in the event of threats to the EU’s territorial integrity, such as those made by Trump earlier this year. But the Commission opposes the provision. Negotiations are also continuing over an expiry date for the agreement, with EU lawmakers proposing March 2028.
Parliament’s negotiators have different priorities
While discussing the details with the EU countries’ diplomats, lawmakers must also ensure they have the support of the Parliament’s majority to get the final version over the line.
The details of the deal could create friction within the fragile “centrist majority” that supports von der Leyen’s Commission. European People’s Party (EPP), Socialists and Democrats (S&D), and Renew Europe agree on the need to have the deal in place, but diverge on the line to keep in the talks with diplomats.
The EPP is more likely to bow to pressure, as it wants to clinch the deal as soon as possible to avoid risks of disruptions for the European industry.
“The earlier we can close negotiations, the earlier we give clarity for businesses and indeed more predictability in a turbulent situation,” Swedish EPP MEP Jörgen Warborn, who has negotiated the deal in the last meeting, replacing her colleague Croatian MEP Željana Zovko, told Euronews after the last attempt failed two weeks ago.
The S&D has a firmer stance and wants the clauses to be featured into the deal.
Bernd Lange, who is the top negotiator from the Parliament, refused to advance the talks and considers that European legislation must not be shaped by threatening social media posts from Washington.
“The latest developments show that it was right for us to stand firm against the American campaign of threats”, he said in a recent press release, referring to the US court rulings against the global tariffs imposed by Trump.
Read the full article here
