European Union eliminates tariffs on U.S. goods as trade pact takes effect

The European Union has adopted legislation that removes customs duties on most industrial and agricultural products imported from the United States, effective from 2 July 2026. The move fulfills a key promise made at the Turnberry trade negotiations last summer, in exchange for capping U.S. tariffs on EU imports at 15%.

EU trade spokesperson Olof Gill said the action was a “promise fulfilled” and a “good news for trans‑Atlantic relations”. The agreement includes a “sunset clause” that will automatically end the deal at the close of 2029, after the end of the Trump administration, unless EU members vote for an extension. The EU also retained the right to suspend the tariff waiver if the United States does not withdraw the extra 50% duties it imposed on certain steel and aluminium products.

The step comes amid renewed tensions, as the U.S. president has threatened 100% tariffs on European countries that tax American digital services.