Agreement reached to put EU-US trade on a more stable footing  

This article is brought to you in association with the European Parliament.

• Sunset clause: tariff preferences set to expire on 31 December 2029, unless renewed  
• Clear conditions set on reduction of tariffs on steel and aluminium derivatives 
• Safeguard mechanism to protect EU industry and agricultural sector  

On Wednesday morning, Parliament and Council reached a provisional agreement on two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US Joint Statement.

The agreement reached by the two EU co-legislators strengthens several elements of the Commission proposals.

Sunset clause

The main regulation on industrial and agri-food imports will expire on 31 December 2029. Before this date, the Commission will make a comprehensive assessment of its trade effects on EU industry, agriculture and small and medium-sized enterprises, and of changes in trade patterns with third countries. The Commission may present a legislative proposal to extend the regulation’s duration.

Steel and aluminium derivatives

In August 2025, the US added 407 product categories to the list of derivative steel and aluminium products subject to tariffs. Parliament considered that these new tariffs increased the level of trade instability and pushed for this issue to be addressed in the main regulation.

The Commission will be able to suspend tariff preferences if by 31 December 2026 the US continues to apply a tariff rate higher than 15 percent on EU steel and aluminium derivatives. Furthermore, the Commission will report to the European Parliament and to the Council, by 1 December 2026, on the tariff treatment of steel and aluminium derivatives.

Strengthened suspension clause

The Commission will also be able to suspend tariff preferences if the United States fails to address the Union’s concerns regarding the tariff treatment of Union exports which until 24 February 2026 benefitted from the 15% all-inclusive tariff ceiling.

Safeguard mechanism

The co-legislators also agreed to establish a safeguard mechanism in the event that the tariff preferences granted to the US lead to increases in imports that threaten to cause serious injury to EU industry, including the agricultural sector. The Commission will be able to start an investigation on its own initiative, or on the basis of information provided by one or more member states or by the European Parliament. The Commission will also report to the Parliament and the Council on a quarterly basis on changes in trade volumes and values of US exports of the goods covered by this legislation.

Customs duties on lobster

Concerning the second proposal on lobsters, Parliament and Council agreed on the Parliament’s proposal for a five-year extension of tariff-free imports of lobster until 31 July 2030. This will apply retroactively from 1 August 2025.

Quote

Bernd Lange (S&D, DE), International Trade Committee Chair and standing rapporteur for the US, said: “It’s been a rocky journey, but it was worth it. By setting the commitments under the joint statement into law, this regulation becomes part of the EU’s toolkit to improve EU-US relations but also responds to pressure. This agreement is an important step towards greater predictability in transatlantic trade relations. With the introduction of the sunset clause and a strong suspension clause Parliament has substantially improved the Commission proposal. The agreement also foresees stronger review and safeguard mechanisms, and clearer and regular democratic oversight. A stable transatlantic partnership can only succeed if both sides remain committed to reliability, restraint and mutual trust “

Press conference

Today at 10.00, Bernd Lange will hold a press conference on the outcome of the negotiations in the press conference room in Strasbourg.

Next steps

The International Trade Committee (INTA) will organise an extraordinary committee to discuss and vote on the outcome of negotiations after having received the Coreper letter confirming Council support for the two texts. The extraordinary meeting will likely take place on Tuesday, 2 June 2026 at 9.00.

Following the vote in committee, the file can be tabled for a vote at the following plenary in June (15-18 June). It will then be the turn of Council to approve the agreed text.

Once the text has been formally approved by the co-legislators, the new legislation will enter into force on the day after its publication in the EU’s official journal.

Background

The President of the European Commission and the President of the United States reached a political agreement on 27 July 2025, reflected in the Joint Statement on a European Union – United States Framework Agreement on Reciprocal, Fair and Balanced Trade of 21 August 2025.

The Commission put forward the two legislative proposals implementing the EU commitments under the Joint Statement on 28 August 2025. The main proposal for a regulation eliminates tariffs on all US industrial goods and provides preferential market access for a wide range of US seafood and agricultural goods. The second proposal for a regulation concerns the prolongation of tariff-free imports of lobster, and now also includes processed lobster.

The INTA committee had originally planned to vote on the two files in January 2026, but it twice postponed the vote: on 21 January 2026 following the US trade threats against European partners over Greenland and on 23 February 2026 following the ruling of the US Supreme Court on the use of the International Emergency Economic Powers Act (IEEPA). The Committee adopted the reports on both files on 19 March 2026. Plenary adopted the reports on 26 March 2026. The two legislative acts were adopted by 417 votes in favour and 154 against, with 71 abstentions (main proposal) and 437 votes in favour and 144 against, with 60 abstentions (Lobster proposal).