Europe and Trade - 30 May 2026
TL;DR - Last Reviewed: 30 May 2026
- The European Parliament has approved the US-EU trade deal agreed at Turnberry, Scotland
- The deal can be suspended if the US does not lift steel and aluminium tariffs by end of 2026
- Some MEPs felt the suspension conditions had been substantially weakened during negotiations
- The deal imposes 15% tariffs on most EU goods, down from the threatened 30%
- Trump has since threatened to raise tariffs further if the EU misses his 4 July ratification deadline
What the European Parliament Voted On
European Parliament members voted in late May 2026 to approve implementation of the trade agreement struck between the United States and the European Union at Trump's Turnberry golf course in Scotland last summer. Under the Turnberry deal, most EU goods exported to the US face a 15% tariff - down from the 30% rate Trump had initially threatened. The EU in turn agreed to tariff reductions on a range of US goods.
The Suspension Clause
The most significant feature of the Parliament's approval is the inclusion of a suspension clause in the final compromise text. Under this provision, the European Commission can suspend the entire trade agreement if the US fails to lift tariffs on European steel and aluminium products by the end of 2026. Either the Parliament or a member state can request that the Commission invoke the suspension mechanism. Some MEPs who voted for the deal nonetheless expressed concern that the conditions attached to the suspension clause had been substantially weakened from the original proposal during the negotiation of the compromise text.
Trump's July 4 Deadline Complicates Matters
The parliamentary approval came at the same time as Trump issued a new demand: ratification of the trade deal by 4 July 2026, or face "much higher" tariffs. He also threatened a separate 25% tariff on EU cars and trucks, accusing the bloc of not complying with the terms already agreed. This means the deal approved by Parliament is already under fresh pressure from the US side even before it has been formally ratified and implemented. The combination of the suspension clause from the EU side and Trump's tariff threats from the US side means the agreement remains highly fragile.
What It Means for UK Businesses
The UK is not part of this agreement and operates under a separate bilateral arrangement with the US. However, UK businesses with supply chains that run through EU member states, or that export via EU trade partners, should note that disruption to the EU-US trading relationship would have indirect effects on UK commerce. Companies that source components or intermediate goods from EU suppliers may see cost pressures if trade flows between Brussels and Washington are disrupted by a renewed tariff escalation.
