EU Backs Down Under Trump’s Pressure: “Will Implement Trade Agreement”

Compromise Reached on Turnberry Agreement

Implementation Extended Until End of Trump's Term

As U.S. President Donald Trump continued to pressure for a renewed increase in tariffs, the European Union (EU) has decided to implement a trade agreement with the United States.

On May 20 (local time), major foreign media outlets such as AFP reported that the European Commission, the European Parliament, and the negotiation teams of member states had reached a compromise on the so-called Turnberry Agreement, which was signed with the United States last year.

This came two weeks after President Trump issued a final ultimatum, threatening to raise tariffs if the agreement was not implemented by July 4.

Previously, in July of last year, the EU and the United States concluded trade negotiations in Turnberry, Scotland, UK. Under the agreement, reciprocal tariffs on EU goods were to be reduced from 30% to 15%. In exchange, the EU would purchase USD 750 billion (approximately KRW 1,311 trillion) worth of U.S. energy and military equipment and make an additional investment of USD 600 billion (approximately KRW 1,049 trillion) in the United States.

However, approval from the European Parliament and member states was repeatedly delayed. This was due to ongoing criticism that the terms of the agreement were excessively unfair, as well as concerns stemming from President Trump's threats to annex Danish-controlled Greenland and a U.S. Supreme Court ruling declaring tariffs illegal, which fostered a cautious atmosphere.

This standoff appears to have been broken by Trump’s pressure. The compromise reached on this day will require another vote in the European Parliament in the middle of next month.

The compromise allows the European Commission to initiate procedures to suspend the agreement if the United States fails to comply or if it discriminates against EU economic entities and thereby hinders trade or investment. Furthermore, the European Commission may suspend the implementation of the agreement, at the request of the Parliament or member states, if the United States does not lower its current 50% tariffs on steel and aluminum by the end of this year.

The sunset clause, under which the agreement would automatically expire in the absence of renewal procedures, has been extended from March 2028 to December 2029, after the end of President Trump’s term.

The European Parliament also demanded that the trade agreement be rendered void if the United States threatens the territorial sovereignty of any EU member state. This demand was prompted by President Trump’s threats to increase tariffs against European countries that sent troops to joint exercises in Greenland this past January, effectively using tariffs as leverage in the Greenland dispute. However, the proposal from the European Parliament was not adopted due to opposition from member states.

Yonhap News Agency

This content was produced with the assistance of AI translation services.