EU lawmakers strike deal on EU-U.S. tariff agreement with safeguards and 2029 expiry date

Brussels, 20 May 2026

The EU Council and European Parliament have reached a provisional agreement on two regulations implementing the tariff elements of the 2025 EU-U.S. Joint Statement. The deal removes remaining EU customs duties on U.S. industrial goods and extends lobster tariff relief, while adding safeguards, quarterly monitoring, suspension clauses and a 2029 sunset clause to protect EU industry, agriculture, SMEs and workers.

EU Commission welcomes political agreement on implementation of EU-US trade deal

Brussels, 20 May 2026

The European Commission welcomes the political agreement reached today between the European Parliament and the Council of the EU on two Regulations eliminating tariffs on all US industrial goods and providing preferential market access for certain US agricultural and seafood products, in line with the EU commitments made in the EU-US Joint Statement of 21 August 2025. The agreed final texts will now be put forward for formal adoption by the European Parliament and the Council over the coming weeks, to ensure their rapid entry into force.

The liberalised market access granted to US exports by the Regulations will ensure that goods needed by EU industry and consumers are cheaper and more readily available, without compromising on any EU sensitivities.

At the same time, in line with usual practice in EU trade agreements, the Regulations offer EU industry strong guarantees against possible trade disruptions through a safeguard clause. Regular monitoring of trade flows will allow for swift action to be taken in the event of an injurious or potentially injurious increase in exports from the US.

The Regulations also give the EU the necessary tools to enforce commitments made in the EU-US Joint Statement. In specifically defined circumstances, the Regulations would allow the EU to respond by suspending in full or in part its tariff concessions.

Today’s agreement ensures that the key objectives of the EU-US Joint Statement — maintaining stable, fair, predictable and mutually beneficial transatlantic trade and investment — are achieved, and opens the path to boosting transatlantic trade by exploring further areas for reducing tariffs for EU exports.

Next steps

The agreed Regulation texts will now enter into the formal adoption process by the European Parliament and the Council over the coming weeks, to ensure their rapid entry into force.

Once approved, the liberalised market access would be in place until the end of 2029, with the possibility of being extended further.

Background

The transatlantic partnership is the most significant bilateral trade and investment relationship in the world. EU-US trade in goods and services has doubled over the last decade, surpassing €1.8 trillion in 2025, with €911 billion of trade in goods and €865 billion of trade in services. Over €4.9 billion of goods and services cross the Atlantic every day. This deep and comprehensive partnership is underpinned by mutual investment. In 2024, the total stock of EU and US firms investments in each other’s markets topped €4.8 trillion.

Commission President von der Leyen and US President Trump agreed on the key parameters of the EU-US deal in July 2025, later reflected in the EU-US Joint Statement of 21 August 2025 which forms the basis for further EU-US trade and economic cooperation.

The US committed to maintain a maximum tariff ceiling of 15% for most EU exports, including cars and car parts, and to provide exclusions from additional tariffs for a number of important product groups such as unavailable natural resources, aircraft and parts and generic pharmaceuticals. In return, the EU committed to eliminate tariffs on all industrial goods and improve market access for certain non-sensitive agri-food products.

The partners also agreed to keep working together to further reduce tariffs on more products, address non-tariff barriers, and cooperate on economic security, critical minerals as well as addressing global steel overcapacity.

For more information

Quote

Collective effort. Strong result. Meaningful work. After more than five hours of intensive negotiations, I welcome the successful trilogue outcome, fully aligned with the EU-US Joint statement. The EU has shown that we are a reliable trading partner, while standing firm in defending the interests of European stakeholders. Once formally approved by the European Parliament and the Council, this will reinforce stability in transatlantic trade and open the door even wider to constructive cooperation. I trust this is in our shared interest and reflects our common ambition.

^{Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency}

Source – EU Commission

EU-US trade: EU Council background on deal to implement the tariff elements of the Joint Statement

Brussels, 20 May 2026 – 03:00

Today, the Council presidency and the European Parliament reached a provisional agreement on two regulations aimed at implementing the tariff-related aspects of the EU-US Joint Statement, agreed on 21 August 2025.

The agreement marks an important step in delivering on the commitments undertaken in the EU-US Joint Statement. It aims at enhancing a stable and predictable transatlantic trade relationship, while ensuring robust safeguards and preserving flexibility to be able to protect the EU’s economic interests, if needed.

The Joint Statement is expected to serve as a platform to continue engaging with the US to lower tariffs and cooperate closely on shared challenges.

The EU and the United States share the world’s largest and most integrated economic relationship. Maintaining a stable, predictable and balanced transatlantic partnership is in the interest of both sides. Today, the European Union delivers on its commitments. We are and will remain a trusted and reliable partner in global trade. We have ensured in our agreement robust safeguards to be able to protect European interests, businesses and workers.

^{Michael Damianos, Minister of energy, commerce and industry of the Republic of Cyprus}

The first (main) regulation eliminates remaining customs duties on US industrial goods and grants preferential market access including via tariff rate quotas (TRQs) and reduced tariffs for certain US seafood and non-sensitive agricultural products. The second regulation focuses on extending the duty suspension for imports of lobster, including processed lobster.

Main elements of the agreement

To ensure the effective implementation of the Joint Statement and protect the EU’s interests, the co-legislators agreed to strengthen the main regulation by setting up a robust safeguard mechanism, reinforcing the suspension clause provisions and introducing a sunset clause, among others. Some elements were mirrored in the second regulation concerning the imports of lobster.

Robust safeguard mechanism

The agreement includes a dedicated safeguard mechanism, which gives the EU the means to address possible significant increases in imports from the US that cause or threaten to cause serious injury to domestic producers.

In particular, following a duly substantiated request from three or more member states, from the EU industry or trade unions, or upon its own initiative, the Commission will launch an examination to assess whether the increased imports have caused or threaten to cause serious injury to EU producers. Where there is sufficient evidence, the Commission may decide to suspend in whole or in part the application of the regulation.

Reinforced suspension provisions

Furthermore, the agreement reinforces the conditions under which the Commission is empowered to suspend in whole or in part the application of the regulation, via an implementing act. This may happen where the United States fails to meet the commitments of the Joint Statement, where the United States otherwise undermines the objectives pursued by the Joint Statement or disrupts the trade and investment relations with the EU, including by discriminating against or targeting EU economic operators. The suspension mechanism may also be triggered where there are sufficient indications that such actions may occur in the future.

Furthermore, the Commission is empowered to suspend concessions concerning steel and aluminium products to the US if by 31 December 2026 the US continues to apply a tariff rate higher than 15% on steel and aluminium derivative products imported from the EU.

Time-limited application

The co-legislators agreed to introduce a sunset clause, under which the regulation will cease to apply at the end of 2029 unless further action is taken.

Monitoring the impact of the measures

The agreement provides for regular monitoring of the economic effects of the trade liberalisation measures on the EU’s economy. Six months after the regulation enters into force, and every three months thereafter, the Commission will have to inform the co-legislators of changes in trade volumes and values of US exports to the EU of the goods covered by the regulation(s).

Six months before the end date of application of the regulation, the Commission will present a comprehensive assessment examining, among other things, the impact of the regulation on the EU-US trade flows, on trade patterns, on tariff revenue, and, more specifically, the impact on SMEs. Where appropriate, this assessment will be accompanied by a legislative proposal to extend the application of the regulation.

Next steps

Once the texts have been finalised at technical level, the provisional agreement on both regulations will have to be endorsed and formally adopted by both institutions before being published in the Official Journal. The regulations will enter into force on the day following their publication. The second regulation concerning lobster imports will apply retroactively from 1 August 2025.

Background

The European Union and the United States have the largest bilateral trade and investment relationship and the most integrated economic relationship in the world, representing almost 30% of global trade in goods and services and 43% of global GDP. EU-US trade in goods and services has doubled over the last decade, amounting to around €1.7 trillion in 2024. This deep and comprehensive partnership is underpinned by mutual investment: in 2023, EU and US firms held over €4.7 trillion in investments in each other’s markets.

Proposed by the European Commission on 28 August 2025, the two regulations will enact the EU’s tariff reductions set forth in paragraph 1 of the EU-US Joint Statement of 21 August 2025.

Source – EU Council

EU Parliament background on the agreement reached to put EU-US trade on a more stable footing

Sunset clause: tariff preferences set to expire on 31 December 2029, unless renewed
Clear conditions set on reduction of tariffs on steel and aluminium derivatives
Safeguard mechanism to protect EU industry and agricultural sector

On Wednesday morning, Parliament and Council reached a provisional agreement on two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US Joint Statement.

The agreement reached by the two EU co-legislators strengthens several elements of the Commission proposals.

Sunset clause

The main regulation on industrial and agri-food imports will expire on 31 December 2029. Before this date, the Commission will make a comprehensive assessment of its trade effects on EU industry, agriculture and small and medium-sized enterprises, and of changes in trade patterns with third countries. The Commission may present a legislative proposal to extend the regulation’s duration.

Steel and aluminium derivatives

In August 2025, the US added 407 product categories to the list of derivative steel and aluminium products subject to tariffs. Parliament considered that these new tariffs increased the level of trade instability and pushed for this issue to be addressed in the main regulation.

The Commission will be able to suspend tariff preferences if by 31 December 2026 the US continues to apply a tariff rate higher than 15 percent on EU steel and aluminium derivatives. Furthermore, the Commission will report to the European Parliament and to the Council, by 1 December 2026, on the tariff treatment of steel and aluminium derivatives.

Strengthened suspension clause

The Commission will also be able to suspend tariff preferences if the United States fails to address the Union’s concerns regarding the tariff treatment of Union exports which until 24 February 2026 benefitted from the 15% all-inclusive tariff ceiling.

Safeguard mechanism

The co-legislators also agreed to establish a safeguard mechanism in the event that the tariff preferences granted to the US lead to increases in imports that threaten to cause serious injury to EU industry, including the agricultural sector. The Commission will be able to start 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 to the Parliament and the Council on a quarterly basis on changes in trade volumes and values of US exports of the goods covered by this legislation.

Customs duties on lobster

Concerning the second proposal on lobsters, Parliament and Council agreed on the Parliament’s proposal for a five-year extension of tariff-free imports of lobster until 31 July 2030. This will apply retroactively from 1 August 2025.

Quote

Bernd Lange (S&D, DE), International Trade Committee Chair and standing rapporteur for the US, said:

It’s been a rocky journey, but it was worth it. By setting the commitments under the joint statement into law, this regulation becomes part of the EU’s toolkit to improve EU-US relations but also responds to pressure. This agreement is an important step towards greater predictability in transatlantic trade relations. With the introduction of the sunset clause and a strong suspension clause Parliament has substantially improved the Commission proposal. The agreement also foresees stronger review and safeguard mechanisms, and clearer and regular democratic oversight. A stable transatlantic partnership can only succeed if both sides remain committed to reliability, restraint and mutual trust “

Press conference

On Wednesday at 10:00 h, Bernd Lange will hold a press conference on the outcome of the negotiations in the press conference room in Strasbourg.

Next steps

The International Trade Committee (INTA) will organise an extraordinary committee to discuss and vote on the outcome of negotiations after having received the Coreper letter confirming Council support for the two texts. The extraordinary meeting will likely take place on Tuesday, 2 June 2026 at 9.00.

Following the vote in committee, the file can be tabled for a vote at the following plenary in June (15-18 June). It will then be the turn of Council to approve the agreed text.

Once the text has been formally approved by the co-legislators, the new legislation will enter into force on the day after its publication in the EU’s official journal.

Background

The President of the European Commission and the President of the United States reached a political agreement on 27 July 2025, reflected in the Joint Statement on a European Union – United States Framework Agreement on Reciprocal, Fair and Balanced Trade of 21 August 2025.

The Commission put forward the two legislative proposals implementing the EU commitments under the Joint Statement on 28 August 2025. The main proposal for a regulation eliminates tariffs on all US industrial goods and provides preferential market access for a wide range of US seafood and agricultural goods. The second proposal for a regulation concerns the prolongation of tariff-free imports of lobster, and now also includes processed lobster.

The INTA committee had originally planned to vote on the two files in January 2026, but it twice postponed the vote: on 21 January 2026 following the US trade threats against European partners over Greenland and on 23 February 2026 following the ruling of the US Supreme Court on the use of the International Emergency Economic Powers Act (IEEPA). The Committee adopted the reports on both files on 19 March 2026. Plenary adopted the reports on 26 March 2026. The two legislative acts were adopted by 417 votes in favour and 154 against, with 71 abstentions (main proposal) and 437 votes in favour and 144 against, with 60 abstentions (Lobster proposal).

Further information

Source – EU Parliament

Statement by Herbst (CDU) and Niebler (CSU) on the trilogue agreement on the Turnberry Agreement

Last night, the Commission, the Council and Parliament reached agreement on the implementation of the EU-U.S. Turnberry Agreement. They stated:

Niclas Herbst (CDU), Chair of the CDU/CSU Group in the European Parliament:

“With the trilogue agreement on the implementation of the Turnberry Agreement, the European Union is sending an important and overdue signal of reliability. In the currently tense transatlantic relations, it is crucial that Europe stands by the agreements it has reached and fulfils its commitments. Our credibility as an international partner also depends on not blocking existing agreements for short-term political reasons.

Today’s agreement is clearly in the interest of our European economy. After more than a year of considerable uncertainty, the Turnberry Agreement finally creates reliable framework conditions again, stable supply chains and planning certainty for our companies. It was essential to prevent a renewed escalation of the tariff conflict and additional U.S. tariffs from 4 July.”

Angelika Niebler (CSU), Co-Chair of the CDU/CSU Group, Chair of the CSU European Group and Member of the Committee on International Trade:

“Especially for Bavaria as an export-oriented industrial location, today’s agreement is of great importance. Open markets and a predictable trade policy framework are crucial for investment, growth and employment. In addition, the automotive and supplier industries in particular depend on stable transatlantic trade relations. Even though the agreement is certainly not perfect, it remains the best basis for preventing additional burdens on companies and jobs.

At the same time, it is right to provide the implementation of the agreement with clear safeguards. The agreed monitoring and review clauses ensure that Europe can respond in the event of new U.S. tariffs. In this way, we combine the implementation of our commitments with the necessary protection of our European industry.”

Source – CDU/CSU by email

e-translated by ChatGPT, prompted by Insight EU. This English translation is provided for informational purposes only. In the event of any discrepancies or legal interpretations, the original German version shall prevail and is the only legally binding text.

Statement by Bernd Lange (SPD), Chair of the Committee on International Trade and negotiator for the European Parliament: “European Parliament prevents blind flight”

The European Parliament, the Member States in the Council and the European Commission reached agreement overnight on a common line for implementing the EU-U.S. agreement. In the process, the European Parliament was able to secure key improvements to the European Commission’s original proposal and a multi-layered safety net to protect industry and consumers.

Bernd Lange, Chair of the Committee on International Trade and negotiator for the European Parliament:

“This is a major success for the European Parliament. We have improved the European Commission’s original proposal at crucial points. Our demands for a stronger safety net have been taken into account. Turbulence in transatlantic trade will certainly not disappear as a result. But the original blind flight has been averted. We now have a toolbox that enables us to respond — and clear guardrails. This creates greater security and stability for Europe’s economy.

It is particularly important that the new rules will not continue permanently and automatically. There is no longer any blank cheque. Instead, for the first time, the agreement contains a clear expiry date preceded by a comprehensive review. As of the cut-off date of 31 December 2029, the impact on Europe’s economy will be reviewed. Should it become apparent that European companies are being harmed or that new imbalances are emerging, the emergency brake will therefore be pulled automatically. The exit clause also strengthens parliamentary scrutiny.

In addition, we have established continuous monitoring. In future, the European Commission will have to report every three months on trade developments. This ensures greater transparency and strengthens democratic oversight. Six months before the regulation expires, the Commission must also submit a comprehensive assessment. On this basis, the EU institutions can decide on an extension.

It was also important for us to have a clear rule on the subsequently added higher U.S. tariffs on steel and aluminium derivatives. Subsequent tariff increases are not acceptable to us. If there is no return to the agreed 15 percent by the end of 2026, the European Commission can withdraw the tariff preferences for precisely these U.S. products. In addition, the Commission must provide the European Parliament with an update on the relevant developments by 1 December 2026. The negotiators have also agreed clear mechanisms for suspension in the event of breaches by the United States. These breaches include new tariffs. This makes clear: the EU can respond swiftly to breaches. The impulse to launch an investigation for a possible suspension may explicitly come from the European Parliament. Parliament can now also directly call on the European Commission to launch investigations and examine protective measures. This gives Europe an additional safety net against new trade policy turbulence.”

The trilogue result must now first be confirmed by the Committee on International Trade and then by Parliament’s plenary. The final vote in plenary is scheduled for the plenary session of 22 to 25 June.

Press conference on the EU-U.S. trade deal with Bernd Lange, Chair of the Committee on International Trade in the European Parliament, on Wednesday, 20 May 2026, at 10:00, in the Daphne Caruana Galizia press room of the European Parliament in Strasbourg, livestream here.

Source – Europa-SPD

Renew Europe: Deal struck to strengthen stability in EU-US trade relations

European Liberals and Democrats are pleased that many of our key demands to “Trump proof” the Turnberry deal are reflected in the final agreement reached overnight, to ensure that if the US reneges on the agreement, Europe can hit back.

The agreement introduces a safeguard clause, a steel clause, a sunset clause expiring in December 2029, and strengthened suspension provisions – alongside clear reporting and evaluation mechanisms.

The suspension mechanism agreed by negotiators empowers the European Commission to reimpose tariffs if Washington wouldn’t comply with the agreement, particularly regarding steel and aluminium derivatives.

MEP Karin Karlsbro (Liberalerna, Sweden), Renew shadow rapporteur on this file stated :

Reaching this agreement was necessary, to Trump-proof trade with the United States and to avoid a pointless trade war. Trade relations must be built on mutual respect and Europe has now set conditions for the transatlantic relations. By finalising this agreement we are doing what we can to provide ourselves and European businesses with as much stability as possible under current circumstances.”

Renew Europe will continue to hold the Commission accountable for the implementation of this agreement and to ensure that European interests remain fully protected throughout the lifetime of the deal.

Source – Renew Europe

Van Dijck (ECR Group): EU–US trade deal delivers certainty for European businesses and workers

The provisional trilogue agreement on the EU–US trade framework marks an important step towards restoring stability and predictability in transatlantic trade relations.

For the ECR Group, the deal sends an important signal at a time of economic uncertainty and growing geopolitical tensions: Europe and the United States remain strategic economic partners whose relationship must be based on pragmatism, stability and mutual benefit.

Commenting after the conclusion of the negotiations, ECR negotiator Kris Van Dijck said:

European businesses, workers and investors have been waiting for certainty. The agreement is an important step towards a more stable and predictable transatlantic economic relationship.”

He added: “The United States remains Europe’s most important strategic and economic partner. At a time of increasing global competition and instability, it is in our clear interest to reduce friction, strengthen cooperation and avoid unnecessary escalation between allies.”

Van Dijck also stressed that Europe must approach trade policy with pragmatism: “Trade policy should serve Europe’s economic strength and competitiveness, not ideological reflexes or anti-American posturing. A constructive and balanced partnership with the United States is essential for European industry, jobs and long-term prosperity.”

He continued: “The ECR Group has consistently argued for a pragmatic and forward-looking transatlantic trade relationship focused on growth, stability and cooperation. Today’s agreement moves in that direction.”

The agreement aims to provide greater legal certainty and a more stable framework for businesses operating across the Atlantic, while reducing tensions linked to tariffs and trade barriers. It now awaits formal approval by Parliament and the Council.

Source – ECR Group

Statement by Anna Cavazzini, shadow rapporteur for the Greens/EFA Group, on the Agreement in trilogue – EU-U.S. tariff deal

The European Parliament, the Council and the Commission reached agreement last night on the implementation of the EU-U.S. tariff deal, the so-called Turnberry Deal. Anna Cavazzini, shadow rapporteur for the Greens/EFA Group, commented on the trilogue outcome:

The deal disadvantages the EU, but it can secure a certain degree of economic stability. Precisely because the deal is so unbalanced, the European Parliament insisted from the outset that Trump should not be given a blank cheque.

We were able to prevail against the Member States and give the EU more leverage vis-à-vis Trump. We are setting an end date for the tariff regime that is disadvantageous to the EU — the end of 2029. There is also at least a certain degree of reciprocity with regard to products containing steel: Parliament succeeded in having steel and aluminium derivatives explicitly included in the suspension clause, thereby increasing pressure on the United States to comply with the agreed 15 percent under the Turnberry Deal. We were also able to ensure that the agreement can be suspended if the United States does not present a solution compatible with the deal following the various court rulings and the resulting legal uncertainty. Parliament was unable, however, to secure an automatic mechanism for activating the suspension clause.

Constant new attacks on EU digital legislation, attempts at blackmail and threats are the new American modus operandi in transatlantic relations. It remains to be hoped that the agreement on the tariff deal will now bring some calm, so that the other major unresolved issues in EU-U.S. relations can be addressed.”

Source – Greens / EFA by email