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EU Adds Sunset Clause to US Deal, Trump Threatens Tariffs

5/20/2026

43 3 Full Breakdown

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EU Parliament Amendments

EU Parliament lawmakers added four amendments that include sunrise and sunset clauses to U.S. trade pact before May 19 talks.
EU negotiators met in Strasbourg on May 19 to finalize legislation eliminating tariffs on U.S. goods and capping duties at 15%.
Donald Trump warned of raising EU car tariffs to 25% after July 4 if deal fails.
Parliament’s amendments add a sunset clause ending concessions on March 31 2028 unless both sides extend them.

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US-China Reduce Tariffs

The United States and China will create trade and investment boards to manage tariff cuts and resolve disputes.
Both nations have agreed in principle to reduce tariffs, pending implementation to ease trade tensions.
Economists say most of President Donald Trump's tariffs were paid by American companies and consumers.
The Supreme Court ruled the tariffs unlawful under the International Emergency Economic Powers Act.

History

Historical Context

The WTO, created on 1 January 1995 under the Marrakesh Agreement to replace the 1948 GATT, introduced a binding dispute-settlement system that now covers 166 members representing over 98 % of world trade. Its rules have helped cut average tariffs from about 22 % in 1947 to 5 % after 1999, shaping today’s EU Parliament amendments and U.S. tariff debates.

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EU Parliament Amendments

EU Parliament lawmakers added four amendments that include sunrise and sunset clauses to U.S. trade pact before May 19 talks.
EU negotiators met in Strasbourg on May 19 to finalize legislation eliminating tariffs on U.S. goods and capping duties at 15%.
Donald Trump warned of raising EU car tariffs to 25% after July 4 if deal fails.
Parliament’s amendments add a sunset clause ending concessions on March 31 2028 unless both sides extend them.

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