EU Parliament Approves Trade Deal with U.S.

The European Parliament formally approved the U.S.–EU trade agreement on Thursday, following delays due to the U.S. Supreme Court’s rejection of the Trump administration’s International Emergency Economic Powers Act tariffs (POLITICO).

The deal would eliminate tariffs on U.S. industrial exports and lower tariffs on U.S. agricultural exports.

The conditions: The approved agreement includes new conditions on the deal’s implementation and a preset end date (so-called sunrise and sunset provisions), along with a clause spelling out what would trigger a suspension of the deal.

Sunrise: Before the agreement goes into effect, the U.S. must reduce Section 232 tariffs to 15% for steel and aluminum derivatives that contain less than 50% of the metals.
Sunset: The deal automatically expires in March 2028.
Suspension: The agreement can be suspended in case of certain U.S. actions: the imposition of tariff hikes or new tariffs (i.e., from Section 232 investigations) that exceed the 15% ceiling; economic coercion; and threats to EU territorial sovereignty.

Next steps: The agreement now moves into “trilogue” discussions—in which the European Commission, the Parliament and EU member state governments discuss the text of the deal.

These discussions—expected to begin as early as April 13—are the final step before the deal goes into effect on the EU side.

To learn more: Contact NAM Director of International Policy Rachel Minogue.