The European Parliament approves lowering tariffs on the US after renewed pressure from the Trump administration

The European Parliament has taken this decision after the renewed pressures of the Trump administration through its permanent ambassador in Brussels. In the middle of the Iran war, Andrew Puzder had warned that the EU could lose its “favorable” access to North American liquefied natural gas if the European Parliament did not approve the pact.

Although the US Supreme Court has annulled most of Trump’s tariffs and the White House has maintained constant trade swings, also the Commissioner for Economic Affairs, Valdis Dombrovskisrecommended this Thursday to the European Parliament to ratify the July pact.

“Despite these legitimate concerns, there is one truth that remains valid: our economic interests demand that we move forward (…) An agreement is an agreement, and our Credibility depends on keeping our word“he alleged.

In the Turnberry pact (Scotland), the EU not only resigned itself to accepting a general tariff of 15% against community products without responding with retaliation against Trump, but rather promised to cut the rates applicable to the US. Some concessions that were described as “humiliation” by a large number of European leaders.

Even so, the US president has continued to threaten Brussels with new surcharges, for example as a result of the greenland crisisor against Spain for not giving up its bases for the war in Iran.

Furthermore, when the Supreme Court annulled most of his tariffs in February, considering that the jurisdiction corresponds to Congress, Trump approved a different legal basis. new burst of rateswhich in some cases exceed the 15% limit agreed with the EU.

Despite all this uncertainty, the European Parliament approved this Thursday the tariff reductions on US products, although with safeguards: a entry into force clausewhich establishes that the zero tariff will only be applied when the US meets its commitments; and one suspension clause in case Trump imposes new rates.

Furthermore, the European Parliament demands that the US reduce your surcharges from the current 50% to 15% against European steel and aluminum before the regulation comes into force. This Thursday’s vote is not yet the end of the procedure, since the legislation still needs to be agreed with European governments.

In his speech before the plenary session prior to the vote, the Commissioner for Economic Affairs has expressed his conviction that the US will respect the July agreement, resorting to a different legal basis, although he has also said that Brussels will remain vigilant and take measures in case of non-compliance.

“Let me be clear on one point: while we will continue to strive to maintain constructive relations and avoid volatility, we will not close our eyes to any risk to our interests“, assures Dombrovskis.