The European Parliament announced that it has approved the trade agreement between the EU and the United States, agreed in August 2025. The legislation focuses on the US tariff regime applied to steel and aluminum derivative products and establishes measures aimed at protecting EU trade interests.
The Commission granted the power to suspend tariff preferences
In August 2025, the US added 407 product categories to the list of steel and aluminum derivatives products subject to tariffs, which was believed to have increased the level of trade instability. The legislation now gives the European Commission the power to suspend tariff preferences if the United States continues to impose tariffs above 15 percent on EU steel and aluminum products after December 31, 2026.
The Commission is also required to submit a report to the European Parliament and Council by December 1, 2026 assessing the tariff treatment of these products.
In addition, the Commission may suspend tariff preferences if the United States does so. does not address EU concerns about the Union's tariff treatment of exports, which benefited from a 15 percent comprehensive tariff ceiling until 24 February 2026.
Safeguard mechanism included
The approved legislation introduces a safeguard mechanism to allow the Commission to examine whether tariff preferences granted USA, to an increase in imports that threatens to seriously damage EU industry. Investigations may be initiated by the Commission itself or on the basis of information provided by EU Member States or the European Parliament. The Commission will also provide quarterly reports tracking changes in the volume and value of U.S. exports covered by the legislation.
The bill will now go to the Council for formal approval. Once approved by the Council and published in the Official Journal of the European Union, the measures will enter into force.
