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, a move that is said to have increased trade instability. As SteelOrbis previously reported, in April of this year, the US announced that derivative products containing significant amounts of steel, aluminum or copper would no longer be subject to the 50 percent tariff and would instead be taxed at the 25 percent rate applied to total value of the product.
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 steel and aluminum derivatives in the EU. products after December 31, 2026. The Commission is also required to submit a report to the European Parliament and the Council by 1 December 2026 assessing the tariff treatment of these products.
Safeguard mechanism included
The approved legislation introduces a safeguard mechanism allowing the Commission to examine whether tariff preferences granted by the United States are leading to an increase in imports that threatens to cause serious harm damage to 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.
