Representatives from the European Parliament and the Council have announced an agreement concerning the dispute over the implementation of the EU-US trade deal. According to the announcement, tariffs on US products are set to be unilaterally scrapped. This elimination will notably apply to European tariffs placed on US industrial goods such as cars and machinery.
However, the agreement incorporates several protective clauses. The current regulations are set to expire on December 31, 2029. Before this date, the Commission is required to conduct a comprehensive assessment of the trade impact on three areas: the EU industry, agriculture, and small and medium-sized enterprises (SMEs). Furthermore, the Commission must analyze changes in trade patterns with third countries. Following this review, the Commission may submit a legislative proposal to extend the arrangement.
The agreement also mandates that the Commission could suspend tariff preferences if the United States maintains a tariff rate exceeding 15 percent on steel and aluminum derivatives imported from the EU until December 31, 2026. Regarding this secondary clause, the Commission is responsible for reporting to the European Parliament and the Council by December 1, 2026, detailing the tariff treatment for these derivatives. Crucially, the elimination of tariffs can also be suspended even if US President Donald Trump decides to increase his own tariffs.
Bernd Lange, Chairman of the Committee on International Trade and permanent rapporteur for the US, commented on the process, stating, “It has been a rocky road, but it was worth it. This agreement is an important step toward greater predictability in transatlantic trade relations”. He noted that the inclusion of both an expiration clause and a strong suspension clause significantly improved the Commission’s initial proposal.
The next procedural step could involve a vote in the plenary session of the EU Parliament in mid-June. Completing this vote would ensure that the deadline set by Trump-to implement the deal negotiated with EU Commission President Ursula von der Leyen by July 4-is met.
