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EU lawmakers have reached a provisional deal to make the EU-US trade agreement suspendable in the event of a market disruption caused by a surge in US imports, Euronews has learned from two sources close to the talks.
Intense negotiations have been underway between EU governments and the European Parliament over the implementation of the deal, which would cut EU tariffs on US goods to zero, under pressure from the Trump administration.
The US has suggested it will double tariffs on European cars if an agreement to swiftly implement the deal is not approved by the European Parliament by 4 July
MEPs have been pushing for tougher conditions since the agreement was clinched last summer between Trump and European Commission President Ursula von der Leyen, arguing that it must not become a vehicle for extortion of the EU.
The deal sees tariffs tripling on EU goods entering America, although the duties are not stackable, while US industrial goods are reduced to zero. Members of the European Parliament have been delaying a vote to implement the accord, arguing that it needed to be rebalanced and include clauses to protect the EU’s interests.
In recent days, a provisional compromise was found on a safeguard mechanism allowing the EU to reimpose tariffs on US industrial goods if a surge in imports disrupts the European market. The details of the wording of the clause are still under discussion.
Negotiators also agreed in principle to include a “sunset clause” that would automatically terminate the deal unless renewed. Parliament initially sought an expiry date of March 2028, though the final timeline remains under negotiation, the sources said.
‘Sunrise’ clause sparks tensions
However, talks remain at a standstill over a proposed “sunrise clause” defining when the agreement would begin to apply. The EU Parliament wants the implementation date to start only once Washington complies with the 15% tariff cap, while the Commission opposes the condition and wants it done immediately, one source said.
The sunrise clause was introduced by MEPs after a US Supreme Court ruling in February declared the 2025 US tariffs illegal, prompting Washington to introduce new duties on EU goods that now average above the agreed ceiling, therefore in violation of the deal.
The European Commission is also pushing to remove references to the EU’s Anti-Coercion Instrument, seen as the EU’s trade bazooka that could curtail US access to the European single market in unprecedented ways.
The Commission is also pushing back against provisions allowing the suspension of the deal if Trump were to threaten the bloc’s territorial integrity again, one of the source said.
Following Trump’s threats earlier this year to target EU countries refusing to support a US acquisition of Greenland, MEPs also added provisions allowing the suspension of the deal in the event of threats to the EU’s territorial integrity.
The Anti-Coercion Instrument is one of the EU’s strongest market defence tools, designed to counter economic pressure from third countries through measures including restrictions on licenses and intellectual property rights. Its use was repeatedly discussed at the height of transatlantic trade tensions last year, but never approved.
EU negotiators are aiming to finalise the agreement by June ahead of a plenary vote in the European Parliament the same month, in time for the 4 July deadline set by Trump.