The European Parliament has announced that it has approved the EU-US trade deal agreed in August 2025. The legislation focuses on the treatment of US tariffs applied to steel and aluminum derivative products and establishes measures aimed at protecting EU trade interests.
Commission granted powers to suspend tariff preferences
In August 2025, the US added 407 product categories to the list of derivative steel and aluminum products subject to tariffs, a move that was said to increase instability in trade. As SteelOrbis reported previously, in April this year, the US announced that derivative products containing significant amounts of steel, aluminum or copper would no longer be subject to the 50 percent duty rate and would instead be taxed at a rate of 25 percent applied to the total value of the product.
The legislation now empowers the European Commission to suspend tariff preferences if the US continues to apply tariffs above 15 percent on EU steel and aluminum derivative products after December 31, 2026. The Commission is also required to submit a report to the European Parliament and the Council by December 1, 2026, assessing the tariff treatment of these products.
Safeguard mechanism included
The approved legislation introduces a safeguard mechanism allowing the Commission to investigate whether tariff preferences granted to the US result in import increases that threaten to cause serious injury to EU industry.
Investigations may be initiated by the Commission itself or based on information submitted by EU member states or the European Parliament. The Commission will also provide quarterly reports monitoring changes in the volume and value of US exports covered by the legislation.
The legislation will now proceed to the Council for formal approval. Once approved by the Council and published in the Official Journal of the European Union, the measures will enter into force.
