Among difficult items, lawmakers agreed to a clause mandating the European Commission to review the deal six months after its entry into force if the U.S. has not lowered tariffs to a 15 percent baseline level on EU products containing steel, instead of the current 50 percent.
“If the United States is not reducing the tariffs for these products — more than 400 products — in six months, we will re-establish the tariffs for steel and steel relevant products inside the EU, automatically,” said Bernd Lange, a German Social Democrat who chairs the Parliament’s trade committee.
Lawmakers also settled on a sunset clause that would put an effective expiry date of March 2028 on the trade deal — while Trump is still in office — meaning that Washington and Brussels would need to negotiate new terms.
A suspension clause that would void the deal, should Trump threaten Europe’s territorial integrity again, was already agreed prior to Tuesday’s meeting.
“Once the agreement is in place, the EU will also have a new tool to respond if we are once again subjected to tariff blackmail,” said Karin Karlsbro of the liberal Renew Group.
The compromise, backed by the European People’s Party, the Socialists & Democrats, Renew and the Greens, comes after Washington voiced frustration over the slow pace of the EU in making good on its side of the bargain struck at Trump’s Turnberry golf resort in Scotland last July.