EU Parliament and Council Approves Key Tariff Legislation Under EU-US Agreement
Two weeks ago, the European Parliament and European Council voted to approve two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US Joint Framework Agreement. To protect domestic interests, several robust safeguards were integrated into the final texts following intense interinstitutional negotiations:
- Sunset Clause: The regulation on industrial and agri-food imports will expire on December 31, 2029. The Commission will assess its economic impact by June 30, 2029, to determine if a prolongation is appropriate.
- Steel and Aluminium Derivatives: The EU reserves the right to suspend tariff preferences if the US maintains a tariff rate higher than 15% on EU steel and aluminium derivatives past December 31, 2026.
- Strengthened Suspension Clause: Tariff preferences can be revoked if the US fails to address EU concerns regarding Union exports that previously benefited from the 15% all-inclusive tariff ceiling prior to February 24, 2026.
- Safeguard Mechanism: A protective mechanism will allow the Commission to investigate and intervene if US imports threaten serious injury to EU industry or agriculture, backed by quarterly trade volume reports to the Council.
The European Council just formally approved the texts on June 26, clearing the path for official publication and enforcement. Full implementation is expected to unlock broader bilateral discussions on critical issues, including outstanding USTR investigations and further tariff exemptions.
For questions on this topic, please contact SFA Public Affairs Lead, Jonathan McDade.
