European Union negotiators and member states clinched a hard-fought provisional agreement in the early hours of Wednesday on the final legislative text of a transatlantic tariff pact with the United States, clearing a significant hurdle in one of the most turbulent periods in EU-US trade relations in recent memory. The breakthrough came several hours after midnight, following intense last-minute wrangling between representatives of the European Parliament, the Council of the EU, and the European Commission.

The underlying trade pact was originally struck last summer at Turnberry, a golf complex in Scotland owned by US President Donald Trump, during a meeting between Trump and European Commission President Ursula von der Leyen. Under its terms, Washington applies a 15 percent tariff on most European goods, while the EU eliminates or reduces duties on a range of US products, including certain agricultural goods such as soy oil and lobster varieties, as well as American cars. Steel and aluminium products remain outside the agreement and continue to face much steeper US tariffs — around 50 percent — under a separate legal framework known as Section 232.

Ratifying the deal on the EU side required new legislation, and that process stalled repeatedly. The European Parliament blocked the text earlier this year, citing Trump's annexationist rhetoric toward Greenland — an autonomous territory of the Kingdom of Denmark — and a February ruling by the US Supreme Court that struck down many of the administration's tariffs on legal grounds. Lawmakers demanded robust safeguard clauses that would allow the EU to suspend tariff concessions if Washington failed to honour the deal. The Commission and member state governments, wary of provoking a US backlash, pushed for a quicker, cleaner ratification. A phone call between Trump and Von der Leyen ultimately extended a previous deadline to 4 July, with Trump warning that the EU should expect "much higher" tariffs — including a rise in car duties from 15 to 25 percent — if the date was missed.

The compromise reached overnight scales back but does not eliminate the Parliament's protective mechanisms. A so-called "sunrise" clause, which would have made EU concessions conditional on prior US action, was dropped entirely. A "sunset" clause, originally set for 2028, has been pushed to the end of 2029, after Trump's current presidential term. A suspension mechanism remains in place, allowing the EU to reverse tariff reductions if the US breaches the agreement or otherwise disrupts the trade relationship. The EU also retained the right to act if a surge in US imports causes serious harm to European producers, and secured a commitment that Washington will address residual surtaxes on steel components by year's end. Cypriot minister Michael Damianos, whose country currently holds the EU's rotating Council presidency, said the bloc was "delivering on its commitments" and stressed the importance of a "stable, predictable and balanced transatlantic partnership."

Formal votes by both the Parliament and member states are still required, with a parliamentary plenary session expected in Strasbourg next month. If a majority approves, the EU would be able to lower tariffs on American goods before Trump's July 4 deadline. The agreement matters well beyond its immediate terms: the EU-US trade relationship is valued at roughly 1.6 trillion euros annually, making it the bloc's largest, and its stabilisation is seen as essential amid broader efforts by the EU to diversify trade ties around the world in response to sustained tariff pressure from Washington.