EU–US trade: Parliament and Council reach agreement on tariffs that implement the joint declaration

Brussels – The European Union and the United States have finally reached a definitive agreement on tariffs — assuming US President Donald Trump doesn’t change his mind. The European Parliament and the Council of the EU reached the interinstitutional agreement needed to implement the joint statement agreed on 21 August 2025. Bernd Lange (S&D), Chair of the European Parliament’s Committee on International Trade and rapporteur for the dossier, is delighted: “This agreement is an important step towards greater predictability in transatlantic trade relations,” he said at the conclusion of negotiations that wrapped up overnight. But that’s not all. “This regulation becomes part of the EU’s toolkit to improve EU-US relations but also responds to pressure.” 

Indeed, the pressure. Trump had urged the EU to reach a deal by 4 July or risk tariffs above the agreed 15 per cent. The White House occupant’s interventions were unwelcome and poorly received. The comments by Michael Damianos, Minister for Commerce and Industry of Cyprus, the country currently holding the rotating presidency of the Council of the EU, are no coincidence: “Today, the European Union is honouring its commitments. We are and will remain a reliable and trustworthy partner in global trade.”

The tariff agreement: two regulations, two deadlines

The EU-US tariff agreement at the heart of the deal between the European Parliament and the Council of the EU concerns two separate measures: a first regulation, the main one, removes the remaining customs duties on US industrial goods and grants preferential access to the European market, including through tariff quotas and reduced tariffs for certain non-sensitive agricultural products and seafood ‘made in the USA’; a second regulation, on the other hand, focuses on extending the suspension of tariffs on imports of lobster, both in its natural state and as a processed product.

 https://www.eunews.it/en/2026/03/12/new-us-trade-investigations-brussels-warns-we-will-respond-to-any-violation-of-the-tariff-agreement/

Under the specific “sunset clause,” the main regulation on industrial and agri-food imports will expire on 31 December 2029. Before that date, the European Commission will conduct a comprehensive assessment of its trade effects on EU industry, agriculture, and small and medium-sized enterprises, as well as on trade patterns with third countries. The Commission may submit a legislative proposal to extend the regulation’s duration.​

 As regards the second proposal on lobsters, Parliament and the Council have reached an agreement on Parliament’s proposal to extend the zero-duty import of lobsters for five years, until 31 July 2030. This extension will apply retroactively from 1 August 2025.

European safeguard mechanism and suspension clause

Under the safeguard mechanism, the EU Commission may also suspend the tariff preferences granted to the United States should the US fail to address the European Union’s concerns regarding the tariff treatment of EU exports, which, until 24 February 2026, benefited from the all-inclusive tariff ceiling of 15 per cent. 

The steel and aluminium dispute, and the EU’s response

The agreement between the Council and the Parliament on the tariff regime with the United States also covers steel and aluminium. In August last year, the United States added 407 product categories to the list of steel and aluminium products subject to tariffs. The Parliament considered that these new tariffs increased trade instability and urged that the issue be addressed in the main regulation. According to the agreement, the Commission may suspend tariff preferences if, by 31 December 2026, the United States continues to apply tariffs above 15 per cent on EU steel and aluminium products. Furthermore, the European Commission will submit a report to the European Parliament and the Council by 1 December 2026 on the tariff treatment of steel and aluminium products.​

“With the introduction of the sunset clause and a strong suspension clause, Parliament has substantially improved the Commission proposal,” said Bernd Lange, who is convinced that “A stable transatlantic partnership can only succeed if both sides remain committed to reliability, restraint and mutual trust.“ Another message for Trump, who can rest easy: by 4 July, the provisional agreement will be finalised because the Committee on International Trade has already convened an extraordinary meeting for 2 June at 9 am to vote on the agreement, so that the House can vote on it during the 15–18 June plenary session. At that point, the Council will be able to approve it in turn and make it law.

The EU does not trust Trump

“We need safety nets with the United States, because there is currently a great deal of unpredictability in our relations with the US,” Lange said during the press conference called to present the details of the agreement. The chair of the European Parliament’s Committee on International Trade confirms that the EU does not trust the US administration and its president, who is “totally unpredictable.”
 So much so that Lange continues, “we need clear suspension clauses in the event of a breach of the Scotland agreements” by the US.

Lange also has something else to say, and it concerns significant differences with the other side of the Atlantic: today, Europe is more democratic than the United States. “We have done our work in a democratic manner, rather than having a single person make all the decisions.”