European Union governments have agreed on a common position to add safeguards and a review clause to the tariff deal reached with the United States earlier this year, aiming to address concerns that a potential surge in US imports could harm EU industry.

The US-EU tariff deal, announced at the end of July, would see Washington impose broad 15% import taxes on EU goods while the European Union lifts many of its own duties on US products, a step that still requires approval from both the European Parliament and member states.

Envoys from the 27 EU governments endorsed the draft legislation on Friday, agreeing to scrap import taxes on US industrial goods and introduce tariff-free quotas for selected seafood and agricultural products.

However, in a bid to shield domestic manufacturers, they also want the ability to suspend some or all of these duty changes if US imports spike to a level that threatens to seriously damage EU industries. Under the plan, the European Commission would investigate safeguard requests submitted by member states.

Governments are further pushing for the Commission to conduct market-impact monitoring and deliver a comprehensive assessment by the end of 2028, shortly after the next US presidential election. This evaluation would help determine whether the tariff framework remains sustainable or requires adjustment.

The final version of the legislation will be shaped in negotiations between EU governments and the European Parliament, which is set to define its position in late January. Lawmakers are considering similar protective measures, including an 18-month sunset clause and a response mechanism in case Washington strays from the terms of the EU-US deal.

The deal at hand

Parliament proposals also urge the United States to withdraw the 50% tariffs it imposed in August on steel and aluminium “derivative” products, a list of 407 goods ranging from motorcycles to wind turbines, after the tariff agreement was announced. If the US maintains those duties, the EU would keep its own tariffs on corresponding American products until the issue is resolved.

On July 27, 2025, the EU and the US agreed to a landmark trade framework aimed at defusing an escalating tariff conflict. Under the political agreement, most exports from EU countries to the US will face a uniform 15% import tariff, a ceiling replacing a patchwork of higher, sector-by-sector levies. 

The deal came after months of mounting tension, during which Washington threatened far steeper tariffs, including plans for 50% duties, especially on steel and aluminium, and surcharges on autos and other key EU exports.  In that context, the agreement was portrayed by Brussels and Washington as a way to restore stability and avoid a full-blown trade war. 

Under the agreement, certain strategic product categories, including many industrial goods, will be eligible for exemptions or preferential terms. For example, tariffs on some products may be eliminated or significantly reduced, making trade more predictable for companies whose supply chains cross the Atlantic. 

At the same time, the deal leaves some contentious sectors unresolved: exports of steel and aluminium from the EU remain subject to steep tariffs under the new regime, reflecting continuing concerns in Washington about protecting its domestic metal industries.