European Parliament gives the green light to the trade agreement with the United States

The main regulation, adopted by 440 votes in favour, 151 against and 50 abstentions, removes tariffs on all US industrial goods and grants preferential access to the EU market for a wide range of fishery and agricultural products from the United States.

The second regulation, adopted by 444 votes in favour, 152 against and 54 abstentions, extends the duty-free import regime for US lobsters and broadens its scope to include processed lobster.

Both texts reflect the agreement reached between Parliament and Council negotiators, who introduced several improvements compared with the Commission’s initial proposal.

Sunset clause

The regulation on industrial and agri-food imports will cease to apply on 31 December 2029. By 30 June 2029 at the latest, the Commission must present a comprehensive assessment of its impact on industry, agriculture and small and medium-sized enterprises in the EU, as well as on the development of trade flows with third countries. The assessment may be accompanied by a legislative proposal to extend the Regulation’s validity.

Steel and aluminium products

In August 2025, the United States added 407 product categories to the list of steel and aluminium products subject to tariffs. Given that this measure increased trade uncertainty, the Parliament insisted that the issue be explicitly addressed in the main regulation. Consequently, the Commission may suspend the tariff preferences granted under the new regulation if, by 31 December 2026 at the latest, the United States continues to apply a tariff of more than 15 per cent to European steel and aluminium products. Furthermore, the Commission must report to the European Parliament and the Council, by 1 December 2026, on the tariff treatment of these products.

Strengthened suspension clause

The Commission may also suspend the tariff preferences if the United States fails to respond satisfactorily to the EU’s concerns regarding the tariff treatment of European exports which, until 24 February 2026, benefited from an overall ceiling of 15 per cent.

Safeguard mechanism

The Parliament and the Council also agreed to establish a safeguard mechanism to address potential market disruptions arising from the tariff preferences granted to the United States. If a surge in imports threatens to cause serious harm to EU industry, including the agricultural sector, the Commission may launch an investigation on its own initiative or on the basis of information provided by one or more Member States or by the European Parliament. The Commission will also report quarterly to the Parliament and the Council on trends in the volume and value of US exports covered by the legislation.

Statement by the rapporteur

Bernd Lange (S&D, Germany), Chair of the Committee on International Trade and standing rapporteur for relations with the United States, stated: ‘Despite the pressure, Parliament stood firm in these negotiations. Our determination has paid off, delivering a stronger deal for European businesses and citizens and much stronger safeguards than originally envisaged.”

By enshrining the EU’s commitments in the joint statement into law, this Regulation becomes part of the EU’s set of defensive instruments: not only does it strengthen and stabilise trade relations between the EU and the United States, but it also gives the EU the ability to respond should the US fail to honour its part of the deal. Thanks to Parliament’s firm stance, the final text now contains a much stronger safety net, including a robust suspension clause, a sunset clause and a safeguard clause, as well as strengthened review mechanisms and stricter democratic oversight.

Having the right tools is only half the battle. Political will is also required. We will continue to monitor the implementation of this agreement closely. Should the US fail to comply with the letter or the spirit of the Turnberry Agreement, Parliament will insist that the Commission make full and timely use of all the instruments provided by this Regulation and the EU’s broader toolkit. A stable and prosperous transatlantic partnership can only succeed if both sides remain committed to it.’

Next steps

Following Parliament’s approval, it is now for the Council to formally adopt the agreed texts. The new legislation will enter into force on the day following its publication in the Official Journal of the European Union.

Background

On 27 July 2025, in Turnberry (Scotland), the President of the United States, Donald Trump, and the President of the European Commission, Ursula von der Leyen, reached an agreement on tariff and trade issues, which was set out in a joint statement. To implement the tariff commitments set out in that statement, the Commission presented two legislative proposals on 28 August 2025.

More information: European Parliament.