The European Parliament voted in favor of implementing the trade agreement reached last year between the EU and the US, but with amendments contingent on Washington’s compliance.
In a plenary vote March 26, the EU assembly adopted by 417 votes in favor and 154 against, with 71 abstentions. MEPs approved conditional tariff reductions on US industrial goods, agricultural products and seafood, setting strict safeguards that could suspend the deal if Washington imposes new duties on EU exports.
The so-called suspension clause could be activated if the US “undermined the objectives of the deal, discriminated against EU economic operators, threatened member states’ territorial integrity, foreign and defense policies, or engaged in economic coercion”, as reported in the MEPs’ statement and underlined in the press conference.
The framework eliminates most tariffs on US industrial goods while granting preferential access for American farm products and seafood, following the July 2025 Turnberry agreement between US President Donald Trump and European Commission President Ursula von der Leyen.
Metals provisions
Under a “sunrise clause” introduced by members of the European Parliament, tariff preferences only take effect if the US reduces duties on EU products with steel and aluminum content below 50% to a maximum 15%. For products exceeding 50% steel and aluminum content, EU tariff preferences on US exports of steel, aluminum and derivative products would cease six months after the regulation’s implementation unless Washington cuts its tariffs to 15% or below.
In steel, the effects of the US tariffs on EU steel applied since March (25%) and June (50%) had a further destructive impact on the sector that was already hit by the effects of global steel overcapacity. According a report by Eurofer, the European steel association, the largest surpluses for EU finished steel exports in 2025 were recorded with the US at 165,000 mt per month, albeit much lower than 2024 when it stood at 219,000 mt/month.
Safeguard mechanism
The parliament strengthened suspension mechanisms allowing the European Commission to withdraw trade preferences if the US imposes additional tariffs exceeding the 15% ceiling or introduces new duties on EU goods. A safeguard provision enables suspension of new tariffs if US imports rise 10% or more for specific product groups, threatening EU industry.
The regulation expires March 31, 2028, requiring a new legislative proposal and impact assessment for extension. Rapporteur Bernd Lange said parliament would only support the deal with “very strong and clear safeguards” after full US compliance.
Energy trade
US and EU leaders also agreed to significantly boost energy trade as part of the deal discussions last summer. The EU pledged to purchase $750 billion in US energy resources — including LNG, oil and nuclear resources — through 2028.
Analysts have widely described the headline figure as unrealistically high. The European Commission has also stressed that private companies, rather than Brussels, drive the commercial decisions behind added trade.
Market watchers have therefore interpreted the energy commitment more as a signal of the EU’s intention to deepen energy ties with the US, rather than a binding pledge.
LNG has become a particular linchpin of EU-US energy relations, with the US growing into the EU’s dominant supplier amid the continent’s pivot away from Russian natural gas. In 2025, it shipped some 57% of the EU’s imports of the superchilled fuel, or about 60 million metric tons, according to data from S&P Global Energy CERA.
That was the first time on record the EU sourced over 50% of its annual LNG volumes from one country.
European leaders, however, have grown increasingly queasy over the continent’s reliance on overseas energy suppliers, doubling down in recent weeks on a desire to boost domestic energy production amid the trade disruptions from the war in the Middle East.
Time frame
Negotiations with EU member states on final legislation begin immediately.
Parliament halted ratification last month after the US Supreme Court declared some of Trump’s so-called reciprocal global tariffs illegal.
The process had already been delayed by Trump’s threat to impose tariffs on European countries in a dispute over Greenland.
A spokesperson for the European Parliament said the trade deal could be signed “before the summer as a realistic expectation.”
Author: Annalisa Villa, Matt Hoisch
