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Image header Agence Europe
Europe Daily Bulletin No. 13861
Contents Publication in full By article 14 / 26
EXTERNAL ACTION / United states

‘Turnberry’ agreement - despite Donald Trump’s threats, Europe keeps discussions on track

Despite new threats from US President Donald Trump to tax European vehicles up to 25% from 11 May, the Europeans intend to continue implementing the commitments they made with the United States at Turnberry in July 2025.

Under the terms of this political compromise - which is not a free trade agreement - taxes on European imports are to be limited to 15% in return for a reduction in European customs duties on a number of American products (see EUROPE 13697/4). However, since last summer, the United States has undermined the compromise reached in Scotland (see EUROPE 13837/4).

The Member States want to maintain the agreement as it stands. Alongside a Eurogroup meeting on Monday 4 May, several states expressed their concerns, but most wanted to maintain the terms of the agreement as concluded. “Our position is clear: we do not want any escalation. We want to find a common path with the Americans”, said German Finance Minister Lars Klingbeil.

This approach is shared by his Polish counterpart, Andrzej Dománski: “Tariffs hurt businesses and [...] households, because consumers bear the cost. We have negotiated an agreement with the United States and it should be adopted rapidly. It is in the interests of both the EU and the US to keep tariffs as low as possible”.

MEPs are calling for safeguards. As new inter-institutional negotiations (trilogues) begin on this text on Wednesday 6 May, several MEPs are calling for the application of the ‘sunrise clause’, under which the agreement would come into force on the European side once the United States has met its commitments.

According to Bernd Lange (S&D, German), chairman of the European Parliament’s Committee on International Trade, these new threats “show [...] how fully justified the safety net called for by the European Parliament is. Trust is good, but only clear rules can prevent arbitrariness”, he declared in a press release published on Saturday 2 May.

The German MEP also advocates using the EU’s trade defence tools, in particular the so-called ‘anti-coercion’ instrument. He is joined on this point by Brando Benifei (S&D, Italian), Chairman of the Delegation for relations with the United States. On Friday 1 May, on the social network X, he urged the European Commission to “[immediately] implement the anti-coercion instrument, so that the European Union can finally stop this escalation”.

This trade defence tool, adopted in 2023, has never been used until now.

The European Commission is ruling out any immediate action. The EU has been confronted with this type of threat many times before, said Thomas Régnier, spokesman for the European Commission, on Monday 4 May. The EU institution wishes to continue discussions with the European Parliament and the Member States and is concentrating on implementing the agreement.

The EU is the most reliable partner in the world. When you sign an agreement with the EU, you know exactly what you’re getting. That is why, from day one, we have been implementing the joint declaration and are fully determined to honour our joint commitments”, commented Mr Régnier.

Asked about the ‘anti-coercion’ mechanism, the European Commission reiterated that all options remained on the table.

The Cyprus Presidency of the Council of the EU, for its part, is keeping discussions on track according to schedule. On Wednesday evening, however, the trilogue is not expected to be conclusive. (Original version in French by Juliette Verdes)

Contents

WAR IN MIDDLE EAST
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
NEWS BRIEFS
CORRIGENDUM