Latest update
16 June 2026
Today, the European Parliament voted in favour of legislation implementing the 2025 EU-US Joint Framework Agreement. Following interinstitutional negotiations that secured enhanced structural safeguards, the Council is now expected to formally approve the texts on 26 June. The new legislation will enter into force the day following its publication in the EU’s Official Journal, marking a significant milestone for business and Ibec as part of our ongoing work to secure a stable, predictable trading relationship with the US.
Enhanced Safeguards Secured
The final text incorporates robust mechanisms which defend European interests while fulfilling the EU’s obligations under the Turnberry agreement. These include;
- Sunset Clause: The regulation on industrial and agri-food imports will expire on 31 December 2029.
- Steel and Aluminium Derivatives: The Commission can suspend tariff preferences if, by 31 December 2026, the US continues to apply a tariff rate higher than 15% on EU steel and aluminium derivatives.
- Strengthened Suspension Clause: Tariff preferences may be suspended if the US fails to address EU concerns regarding the tariff treatment of Union exports which, until 24 February 2026, benefitted from the 15% all-inclusive tariff ceiling.
- Safeguard Mechanism: A mechanism will be established should US imports threaten serious injury to EU industry or agriculture. The Commission may initiate investigations if US imports threaten EU industry or agriculture and the Commission will report to the Council on a quarterly basis on changes in trade volumes and values of US exports.
This milestone follows a prolonged negotiation period during which Ibec actively campaigned for the agreement to be implemented. Ahead of both the International Trade Committee vote and the final plenary session, Ibec wrote to all Irish MEPs asking them to vote in favour of the legislation. Furthermore, during Ibec’s annual St. Patrick’s Day delegation to Washington, senior leadership reinforced Ibec’s strategic priorities in high-level bilateral meetings with the USTR, the US Department of Commerce, and the US Special Economic Envoy for Northern Ireland.
Next Steps for Transatlantic Trade
With full implementation of the framework, we anticipate meaningful progress on critical outstanding bilateral issues, including steel derivatives, tariff exemptions, and ongoing USTR investigations. Ibec will continue to robustly advocate for our primary objective: reducing tariffs and lowering the cost of doing business across the Atlantic.
Webinar / US and EU Trade Agreement
The Joint EU-US Framework Statement of August 2025 resolved significant uncertainty for businesses, yet the persistent 15 per cent tariff remains a substantial burden. Sectors operating on narrow margins with heavy reliance on the US market continue to be severely impacted, and the pending outcome of the ongoing Section 301 investigations poses a critical risk to Irish enterprise.
In response, Ibec’s core message to the Government is clear: the most exposed sectors urgently require financial and structural support akin to the interventions deployed during the Brexit transition. We are continuing to advocate robustly at both national and European levels to secure this support and protect our members’ interests.
Meanwhile, Ireland and the EU are maintaining intensive diplomatic engagements with the US regarding these trade barriers. The Section 301 process remains active, with a public comment period open until 6 July 2026 and public hearings scheduled for 7 July. Furthermore, on 2 April 2026, President Trump announced the Section 232 investigation findings, introducing strict tariffs on patented pharmaceutical products. While a 100 per cent baseline tariff takes effect on 31 July 2026 for major corporations and 29 September 2026 for smaller entities, European products will instead face a mitigated 15 per cent rate due to existing agreements. Coupled with comprehensive technical exemptions for generic and specialty medicines, we anticipate the direct disruption to Irish and European pharmaceutical companies will be limited.
— Danny McCoy, Ibec CEO
Listen / Timely analysis from our experts
Reaction: Trump administration announces tariffs
Fergal O’Brien and Gerard Brady give their reaction to the U.S administration's tariff announcement and discuss the impact this will have on Irish business.
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Ibec's policy executives work across the political and administrative spectrum to ensure that the issues and concerns of employers and business, are effectively communicated to relevant people. We use our unmatched knowledge and influence to lobby and advocate on behalf of our members. The team are happy to provide briefings on key policy areas.
Fergal O'Brien
Executive Director, Lobbying & Influence
Ger Brady
Chief Economist
Pat Ivory
Director of EU & International Affairs
Aidan Sweeney
Head of Infrastructure & Environmental Sustainability
Maeve McElwee
Executive Director, Employer Relations
Helen Leahy
Head of Regional Policy
Kara McGann
Head of Skills & Social Policy
Cormac Healy
Director, Drinks Ireland
Patricia Callan
Director, Financial Services Ireland
Sinead Keogh
Director BPCI
Paul Kelly
Director, Food Drink Ireland
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Disclaimer
The information provided on this website is for general informational purposes only and does not constitute official guidance or legal advice. Ibec is not responsible for issuing formal guidance on U.S. tariffs or trade-related matters. The FAQs and related content will be updated regularly as the situation evolves and new information becomes available. For specific advice or compliance support, please consult your company’s legal representatives and relevant national authorities.