BRUSSELS – May 20, 2026. The European Union, under pressure from US President Donald Trump's ultimatum, has approved the final text of a trade agreement with the United States. The decision was made in the final hours before the deadline set by the White House chief, who had previously threatened to impose new tariffs on European goods.

 According to sources in Cyprus, which holds the EU presidency, the consensus was reached early on May 20, following intense negotiations between parliamentarians and member states. This allowed for the resolution of long-standing disagreements that had prevented a deal from being reached with Washington.

 During the five-hour discussions, strengthened provisions for the suspension of concessions were approved. These measures will come into effect if the United States fails to comply with the agreements reached. Additionally, a clause was approved that will terminate the agreement at the end of 2029 if new legislation is not passed to extend it.

"As the EU-US Trade Framework Agreement's permanent rapporteur, I am proud to say that Europe has managed to avoid a devastating escalation of transatlantic trade tensions and protect European companies, investments, and millions of jobs on both sides of the Atlantic," said Zhelyana Zovko, the European People's Party's lead trade negotiator for the EU-US agreement, on social media platform X.

In early May, Donald Trump issued a harsh ultimatum to the European Union: if the bloc does not approve the trade agreement signed in the summer of 2025 by July 4, the United States will impose higher tariffs. "There was a promise that the EU would fulfill its part of the deal and reduce tariffs to zero in accordance with the agreement! I agreed to give them until the 250th anniversary of our country," the US president wrote at the time.

As a reminder, the EU-US Trade Agreement of 2025, signed in July 2025 in the Scottish city of Turnberry, aimed to address the trade imbalance where the EU exported significantly more to the United States than it imported. Under the terms of the agreement, the European Union committed to removing tariffs on American industrial goods and expanding preferences for American agricultural products and seafood. In return, the United States agreed to limit the imposition of tariffs on EU goods.

The situation highlights the dynamic and often tense trade relations between the EU and the US, where political pressure and urgency play an equally important role as long-term economic interests.