The European Parliament has reached a compromise on the terms for implementing the EU-US trade agreement, originally concluded in July 2025, unblocking legislative progress after earlier delays, according to media reports.
Under the terms agreed by political groups in the Parliament’s trade committee, the EU’s tariff concessions under the pact will include:
- a sunset clause requiring the concessions to expire by March 2028 unless explicitly extended;
- a suspension clause that triggers if the United States violates agreed rules;
- a safeguard mechanism to address risks to the European market from lower tariffs on US goods.
Steel tariff review clause added by lawmakers
Members of the European Parliament also agreed on a provision requiring the European Commission to review the agreement within six months of its entry into force if the US fails to reduce tariffs on certain EU products containing steel from 50 percent to a base level of 15 percent. If that reduction does not occur, tariffs on steel and related products could be automatically reinstated inside the EU.
Although the political groups have agreed on the terms, the amended agreement text must still be approved at a plenary session of the European Parliament and agreed with EU member states in further negotiations. As a result, some provisions may change before final adoption.
Broader context of EU-US trade relations
The underlying trade framework aims to eliminate EU tariffs on most US industrial goods and set a 15 percent tariff cap on the majority of EU exports to the United States. The agreement had stalled in Parliament due to geopolitical tensions but has now moved forward with these new conditions.