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EU PARLIAMENT BACKS CORE TERMS OF US TRADE DEAL

Lawmakers approved tariff reductions and a series of safeguard mechanisms designed to protect the bloc if US trade policy shifts again.

The Logistic News by The Logistic News
March 28, 2026
in Business, Logistic, World
Reading Time: 2 mins read
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EU PARLIAMENT BACKS CORE TERMS OF US TRADE DEAL
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The European Parliament has cleared an important legislative hurdle for the implementation of a framework trade agreement reached with the United States last year.

Lawmakers voted in favour of two key proposals that would eliminate most tariffs on US industrial goods while also granting preferential market access to selected agricultural and seafood products. Under the broader agreement, struck in August, the US agreed to reduce tariffs on many EU goods to 15%.

The parliament also approved several new safeguard measures aimed at protecting European interests if Washington changes course.

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Among them is a strengthened suspension clause that would allow the EU to halt the agreement if the US imposes tariffs above the 15% ceiling set for European goods. According to a parliament statement, the clause could also be triggered if the US undermines the objectives of the deal, discriminates against EU economic operators, threatens the territorial integrity or foreign and defence policies of member states, or engages in economic coercion.

That reference to territorial integrity carries particular weight given earlier remarks by US President Donald Trump, who had threatened tariff action against eight European countries during a campaign linked to the annexation of Greenland. The EU temporarily paused work on the deal at that time before resuming once Trump withdrew the threat.

Beyond the suspension clause, parliament also endorsed additional provisions designed to ensure Washington follows through on its commitments. One of these is a sunrise clause, requiring the US to implement its tariff cap of 15% on EU steel and aluminium before the bloc activates its own tariff reductions.

The approved rules also include an expiry date of 21 March 2028, although that could later be extended through new legislative proposals. In addition, the package includes a safeguard mechanism that would allow the EU to suspend tariff reductions if import volumes from the US seriously threaten European industry.

The additional protections form what Bernd Lange, chair of the European Parliament’s International Trade Committee, recently described as a “multi-tiered safety net”, reflecting the continuing uncertainty around US trade policy.

The agreement still requires further negotiation with individual member governments before all provisions can be fully implemented.

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