The European Parliament has announced that it has set strict conditions for lowering tariffs on US products under the EU-US trade deal, linking tariff reductions to full compliance by the US.
MEPs adopted their position on the tariff-related aspects of the agreement, which, if approved by member states, would eliminate most tariffs on US industrial goods and expand market access for agricultural and seafood products.
Tariff cuts conditional on US compliance
Lawmakers introduced a “sunrise clause”, meaning tariff reductions will only take effect if the US meets its commitments under the agreement. These conditions include reducing tariffs on EU products with steel and aluminum content to a maximum of 15 percent, ensuring reciprocity in trade relations. For products with higher steel and aluminum content, EU tariff preferences on US exports would be withdrawn within six months if the US does not comply with the agreed tariff levels.
MEPs strengthened the agreement by introducing a suspension clause, allowing the EU to withdraw trade preferences if the US:
- imposes additional tariffs above agreed levels,
- discriminates against EU companies,
- or engages in economic coercion.
The European Commission will also monitor import volumes and may suspend tariff reductions if a surge in US imports threatens EU industries.
Sunset clause sets 2028 deadline
The Parliament also agreed on a “sunset clause”, setting an expiry date of March 31, 2028 for the main regulation. Any extension would require a new legislative proposal and a full impact assessment.
