Brussels [Belgium], May 20, (ANI): In a breakthrough, the European Union (EU) cleared a major hurdle that will make progress on the trade pact with the US fast. The bloc agreed on the legislation that will remove import duties on US goods entering the EU. US President Trump had set a July 4 deadline after which he threatened to increase the tariffs on EU goods coming to the US.

Both the EU and the US had reached a trade deal last July at President Trump's Turnberry golf resort in Scotland. As part of the deal, the EU had agreed to remove import duties on US industrial goods and give preference to US farm and sea produce. The US had, in turn, agreed to impose tariffs of 15% on EU products.

The development comes after the European Commission and the Parliament approved legislation to implement duty cuts on US goods.

'I welcome the agreement reached by the European Parliament and the Council on reducing tariffs for US industrial exports to the EU. This means we will soon deliver on our part of the EU-US Joint Statement, as promised. I now call on the co-legislators to move swiftly and finalise the process,' wrote European Commission President Ursula von der Leyen on X.

German Chancellor Friedrich Merz hailed the agreement, saying it shows that the EU is committed to delivering on the trade pact.

In a post on X, Merz said the deal meant 'more security and stability for our businesses.'

As part of the deal with the US, the EU pledged investments worth EUR514 billion ($596.3 billion). The US is the EU's largest trading partner.

The 27-nation bloc had initially negotiated for a lesser 10% tariff on EU goods. The delay was partly due to the US Supreme Court striking down Trump tariffs in February. Trump subsequently imposed a blanket 15% tariffs.

A final vote of approval for the legislation is expected in mid-June, much before the July 4 deadline.

The bloc made some concessions for the deal to fructify. The EU lawmakers wanted to insert tougher sunrise and sunset clauses under which the EU will only effect duty cuts if the US holds up its side of the deal and an end to the tariff cuts on March 31, 2028. However, the European governments were sceptical of the US President reneging on the deal. (ANI)