On June 16, 2026, the European Parliament (EP) approved two legislative texts implementing the EU’s tariff commitments under the EU-US trade agreement. Formal approval by the Council of the EU remains pending.
The adopted measures provide for the elimination of tariffs on all US industrial goods and grant preferential market access for a wide array of US seafood and agricultural goods. The extension of tariff-free lobster imports, now including processed lobster, was also endorsed by the EP.
Background
US President Donald Trump and EU Commission (Commission) President Ursula von der Leyen reached an agreement in July 2025 on trade and tariff issues. Key terms of the agreement included the EU’s intent to eliminate tariffs on all US industrial goods, providing preferential market access for a wide range of US seafood and agricultural goods. The broader deal also aimed to create a framework for reducing other trade barriers over time. In August 2025, the Commission published two legislative proposals geared toward implementing the tariff-related provisions from the agreement, which were voted this week.
Sunset clause: Expiry and Review of the Main Regulation
The main regulation on industrial and agri-food imports is set to expire on December 31, 2029. By June 30, 2029, the Commission shall undertake a comprehensive assessment of its effects on Union industry, agriculture and small and medium-sized enterprises, as well as on trade patterns with third countries, and, where appropriate, submit a legislative proposal to extend its application.
Strengthened suspension clauses
The approved texts grant the Commission several powers to suspend tariff preferences in its trade relationship with the United States.
- General suspension clause: The strengthened suspension clause will empower the EU to suspend tariff preferences. This is particularly relevant if the US does not adequately resolve the EU’s concerns relating to the tariff treatment of EU exports, which were previously subject to a 15% cap until February 24, 2026.
- Steel and aluminium: Regarding steel and aluminium, the Commission is granted competence to suspend tariff preferences should the US continue to apply tariff rates exceeding 15% on EU steel and aluminium derivatives by December 31, 2026. It shall also report to the EP and the Council of the EU (Council) on the tariff treatment of those products by December 1, 2026.
Safeguard mechanism
The EP and Council agreed to establish a safeguard mechanism whereby tariff preferences granted to the US may be counteracted if they result in import increases that threaten to cause “serious injury” to the Union’s (agricultural) industry. The Commission is also empowered to initiate investigations ex officio or based on information provided by one or more Member States or the EP and shall report on a quarterly basis to the EP and Council on trade volume developments and the value of the US exports concerned.
Key Takeaways and Next Steps
- The Council must now approve the adopted texts. It will then enter into force on the day after its publication in the EU’s Official Journal.
- The steel and aluminium sectors remain structural friction points.
- The EU is moving towards more conditional market access, reflecting a somewhat increasing defensive trade policy.
- There is a rising importance of safeguard mechanisms, potentially reflecting increasing uncertainty in the US’s commitment to trade deals.
- Taken together, the sunset clause, suspension powers and safeguard mechanism show that the EU is willing to liberalise trade with the US, but only on a monitored and reversible basis.
- From a customs perspective, the implementation of tariff preferences will require careful alignment of origin determination, preference eligibility (including, where relevant, tariff-rate quotas) and import compliance processes.
