The European Council presidency and Parliament have reached a provisional agreement on the tariff elements of the EU-US trade deal. This includes enabling the EU to suspend tariff preferences for the US if the latter continues to apply a tariff rate higher than 15% on so-called steel and aluminium “derivatives” imports from the EU beyond end-2026.
The agreement is now valid through 2029, compared to the previous draft which envisaged expiry in March 2028, with an extension possible through a legislative proposal, Kallanish notes.
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 also be able to suspend tariff preferences if the US 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, the European Parliament says.
These products include semiconductors and autos and auto parts. Since the provisional Turnberry deal signing last July, EU vehicles are temporarily levied with a 15% duty in the US; however, US President Donald Trump has been threatening in recent weeks to reinstate the full 25% Section 232 duty if the EU does not quickly agree to the US trade deal.
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.
Six months after the regulation enters into force and every three months thereafter the Commission will report any changes in trade volumes and values of US exports to the EU of the goods covered by the regulation. Six months before expiry, the Commission will present a comprehensive assessment of the regulation’s impact.
The International Trade Committee (INTA) will now organise an extraordinary committee to discuss and vote on the outcome of negotiations. This will take place on 2 June.
Following the vote in committee, the file can be tabled for a vote at the following Parliament plenary on 15-18 June. It will then be the turn of the 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.
