Provisional Trade Deal Reached Between U.S. and EU

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• LME Aluminum 3M Select trades $-7.50 lower to $3594.50 at 8:28:20 AM

  • (Dow Jones) – European Union negotiators on Wednesday said they reached a provisional deal to remove some tariffs on U.S. imports as part of the bloc's trade deal signed last summer, ahead of a U.S. deadline to ramp up tariffs on cars.  Lawmakers in Brussels had paused their ratification of the deal more than once this year after the U.S. Supreme Court ruled that some of Trump's so-called reciprocal global tariffs were illegal. They also delayed the process when Trump threatened to raise tariffs on nations that opposed his desire to annex Greenland, part of Denmark.  Trump later said he would impose new 25% tariffs on EU car imports if Europeans didn't implement the agreement by July 4, after U.S. officials grew frustrated with the pace of progress in Brussels.  The trade deal "is expected to serve as a platform to continue engaging with the U.S. to lower tariffs and cooperate closely on shared challenges," the European Council said Wednesday. The agreement reached Wednesday paves the way for a final vote in the European Parliament ahead of Trump's deadline.  Officials sought to protect the bloc's metals sector by giving the commission power to reinstate tariffs on U.S. steel and aluminum if the White House continues to apply a tariff rate higher than 15% on products made with those metals imported from the EU after December 2026.  The U.S. set out a tariff regime for steel, aluminum and copper in April that sets duties of up to 50% for commodity-grade metals and a 25% rate for some products made with them.

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