European lawmakers are calling for the removal of the 50% U.S. tariffs on steel and aluminum products

On March 26, the European Parliament gave the green light to the EU-U.S. trade agreement reached last year, albeit with certain conditions. This is stated in a press release from the institution.

MEPs adopted their position on two proposals regarding the implementation of the agreement’s tariff provisions. If these texts are agreed upon with EU member states, they will eliminate most tariffs on American industrial goods and provide preferential market access for a wide range of seafood and agricultural products from the US, in accordance with the agreements reached in the summer of 2025.

However, a number of safeguards are provided for. These include a clause on potential suspension. Specifically, the EC may propose suspending all or some trade preferences if the U.S. imposes additional tariffs exceeding the agreed 15% limit, or any new duties on the bloc’s goods. The provision may also be activated under a number of other conditions.

Members of the European Parliament also voted in favor of a deferral clause, insisting that the new European preferences will take effect only if the U.S. fulfills its obligations. This includes reducing U.S. tariffs on EU products containing no more than 50% steel and aluminum to a level of no more than 15%.

Furthermore, regarding EU goods with a steel and aluminum content exceeding 50%, if the US does not reduce its tariffs to a level of no more than 15%, the bloc’s tariff preferences for exports of steel, aluminum, and their derivative products from the United States will cease to apply six months after this regulation enters into force.

An automatic termination of the EU tariff reductions at the end of March 2028 has also been added.

Parliamentary negotiators are likely to meet with representatives of EU countries as early as mid-April to begin negotiations on a final compromise.

As a reminder, in July 2025, the EU and the US reached a trade agreement intended to stabilize economic relations between the world’s two largest economies. The agreement provided for a fixed tariff rate of 15% on most goods exported from the European Union.