EU lawmakers have reached a provisional agreement aimed at putting transatlantic trade with the United States on a more predictable footing, introducing time limits, tighter
safeguards, and new conditions on tariff reductions under the August 2025 EU–US Joint Statement.
Negotiators from the European Parliament and the Council agreed on two legislative proposals that implement the tariff commitments while strengthening oversight and enforcement mechanisms.
A key feature of the deal is a 'sunset clause': the main regulation covering industrial and agri-food imports will automatically expire on 31 December 2029 unless renewed. Before that deadline, the European Commission will conduct a comprehensive review of the regulation’s impact on EU industry, agriculture, and small and medium-sized enterprises, as well as broader shifts in global trade patterns. Based on that assessment, the Commission may propose an extension.
The agreement also addresses growing tensions around 'steel and aluminium derivatives', following the US decision in August 2025 to extend tariffs to 407 additional product categories. Under the new framework, the Commission will be able to suspend EU tariff preferences if the US continues applying tariffs above 15% on these products beyond 31 December 2026. A formal report on the issue must also be submitted to Parliament and Council by 1 December 2026.
In addition, a reinforced suspension clause allows the Commission to act if the US fails to resolve concerns related to tariff treatment of EU exports that had previously benefited from a 15% tariff ceiling.
Lawmakers also agreed on a 'new safeguard mechanism' designed to protect EU industry and agriculture from potential import surges. If tariff preferences granted to the US lead to market disruptions or serious injury to EU producers, the Commission will be empowered to launch an investigation on its own initiative or following requests from member states or the European Parliament. Quarterly reports on trade flows will also be required.
Separately, negotiators confirmed a five-year extension of tariff-free access for lobster imports under a second proposal. The measure, originally set to expire in 2025, will now apply retroactively from 1 August 2025 and remain in force until 31 July 2030.
The provisional agreement still requires formal approval before it can enter into force. Photo by Karmakolle, Wikimedia commons.