On Thursday, the European Parliament voted to approve a trade agreement between the European Union and the United States, incorporating amendments to safeguard European interests if the United States fails to fulfil its commitments. Members of the European Parliament (MEPs) adopted their positions on two proposals implementing the tariff components of the EU-US Turnberry trade agreement.
On 27 July 2025, in Turnberry, Scotland, European Commission President Ursula von der Leyen and US President Donald Trump finalised an agreement addressing tariff and trade issues, which was outlined in a joint statement released on 25 August, 2025. Subsequently, on 28 August, the European Commission published two legislative proposals focused on these tariff aspects.
The first proposal aims to grant preferential access to the European market for US goods, while the second extends the existing zero-tariff regime for certain types of lobster imports. If EU member states accept these proposals, they will lead to the elimination of most tariffs on US industrial goods and provide preferential market access for a diverse range of US seafood and agricultural products, in accordance with the commitments established in the summer of 2025 between the EU and the US.
Suspension clause addressing new tariffs
MEPs have fortified the proposed suspension clause, which would enable the suspension of tariff preferences with the United States under specific conditions. For instance, the Commission could propose suspending all or part of the trade preferences if the United States imposes additional tariffs exceeding the established 15% ceiling, or if it imposes new duties on EU goods. The clause may also be activated if the United States undermines the objectives of the agreement, discriminates against European economic operators, threatens the territorial integrity of member states, impacts their foreign and defence policies, or engages in economic coercion.
Sunrise clause: Conditions for tariff preferences
A “sunrise clause” has been introduced, stipulating that the new tariffs will only take effect if the United States adheres to its commitments. These commitments include reducing tariffs on EU products containing less than 50% steel and aluminium to a maximum of 15%. Furthermore, for EU products with a steel and aluminium content exceeding 50%, should the United States not lower its tariffs to 15%, the EU’s tariff preferences for US exports of steel, aluminium, and related products will be nullified six months after the regulation takes effect.
Sunset clause: Expiration of tariff preferences
MEPs have also established an expiration date for the main regulation of 31 March 2028. This regulation may only be extended through a new legislative proposal, which would require a comprehensive impact assessment.
The Commission is tasked with monitoring the impact of these new regulations. It has the authority to temporarily suspend new tariffs if US imports reach levels that could inflict serious harm on EU industry, such as a 10% increase in imports within specific product categories.
The two legislative acts received favourable votes of 417 in favour and 154 against, with 71 abstentions, concerning adjustments to customs duties and the opening of tariff quotas for certain goods from the United States. The second act garnered 437 votes in favour and 144 against, with 60 abstentions regarding the non-application of customs duties on imports of specific goods. MEPs are now positioned to start negotiations with EU member states on the final formulation of this legislation.
“With today’s vote, we have a strong mandate for negotiations with the Council and we intend to make the most of it. MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal. I intend to defend this mandate firmly in the negotiations,” said rapporteur Bernd Lange (S&D, DE).
“The conditions are clearly defined in Parliament’s position. They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining WTO-compliant. Any further tariff threat, or the failure of the deal to deliver for EU producers and consumers, will lead to the expiry of the legislation,” added Lange.
EU trade representative Maroš Šefčovič and his US counterpart Jamieson Greer will negotiate the deal on Friday at the World Trade Organisation meeting in Yaoundé, Cameroon.
“We need the EU-US deal in force on both sides — delivering real certainty for EU businesses and showing that genuine partnership gets results,” Šefčovič said after the vote in Brussels.
US Ambassador to the EU Andrew Puzder emphasised that the vote will bring “stability and predictability” for businesses in both regions and foster economic growth. He urged all parties to consider future opportunities for transatlantic businesses. Malte Lohan, CEO of the American Chamber of Commerce to the EU, noted that the vote signals progress for businesses that have been uncertain over the past year and is crucial for creating a more predictable marketplace.
The EU paused the deal after a February ruling by the US Supreme Court that invalidated President Trump’s emergency powers to impose new import taxes. The European Commission sought clarification on the implications of this ruling. In 2024, EU-U.S. trade in goods and services totalled €1.7 trillion, averaging €4.6 billion per day.
Europe’s main exports to the US include pharmaceuticals, cars, and aircraft, while major U.S. exports to the EU involve services, oil and gas, and medical equipment. Croatian lawmaker Željana Zovko noted that despite trade tensions, trans-Atlantic trade had grown, stating, “If it works, we should strengthen it, not hold it back.”
This article used information from The Associated Press.
