EU Parliament members set conditions for lowering tariffs on US items

On July 27, 2025, in Turnberry, Scotland, US President Donald Trump and European Commission President Ursula von der Leyen reached a deal on tariff and trade issues, outlined in a joint statement published on August 25.

EU Parliament members have adopted their position on two proposals implementing the tariff aspects of the EU-US Turnberry trade deal.
The texts, if agreed with EU members, will eliminate most tariffs on US industrial goods and offer preferential market access for many US seafood and agricultural goods.
The members strengthened the proposed suspension clause, and introduced ‘sunrise’ and ‘sunset’ clauses.

The texts, if agreed with EU member states, will eliminate most tariffs on US industrial goods and provide preferential market access for a wide range of US seafood and agricultural goods, in line with the commitments made in summer 2025 between the EU and the United States.

The MEPs strengthened the proposed suspension clause, which would allow the tariff preferences with the US to be suspended under a number of conditions.

For instance, the Commission would be able to propose suspending all or some trade preferences if the US were to impose additional tariffs exceeding the agreed 15-per cent ceiling, or any new duties on EU goods, a release from the Parliament said.

The suspension clause could also be activated if the US undermines the objectives of the deal, discriminated against EU economic operators, threatened member states’ territorial integrity, foreign and defence policies, or engaged in economic coercion, it noted.

The MEPs have introduced a ‘sunrise clause’ that means the new tariffs would only become effective if the US respects its commitments. These conditions include the US lowering its tariffs on EU products with a steel and aluminium content below 50 per cent, to a tariff of maximum 15 per cent.

Furthermore, for EU products with a steel and aluminium content of above 50 per cent, unless the US reduces its tariffs to a maximum of 15 per cent, EU tariff preferences for US exports of steel, aluminium and their derivative products would cease to apply six months after the entry into application of the regulation.

The members also agreed on an expiry date for the main regulation on March 31, 2028. This could only be extended via a new legislative proposal, to be submitted following a thorough impact assessment of the effects of the regulation.

The European Commission would be tasked with monitoring the impact of the new rules and would be able to suspend the new tariffs temporarily, should US imports reach a level that could cause serious harm to EU industry.

Fibre2Fashion News Desk (DS)