On 26 March 2026, the European Parliament announced it had conditionally approved two legislative proposals implementing tariff reductions under the EU-US trade deal negotiated in Turnberry, Scotland (Turnberry Agreement) in July 2025. The measures—adopted by a clear majority (437 in favour, 144 against, 60 abstentions)—provide for the removal of most tariffs on selected US industrial and agricultural products. A 15% tariff is set for most EU goods, reflecting a reduction from the higher rates previously threatened by US President Trump.
Parliament paired its approval with several “safeguard” mechanisms: a “sunrise clause” tying implementation to verified US compliance, a “suspension clause” enabling the EU to revoke the deal if the US imposes new tariffs and a “sunset clause” setting the agreement to expire on 31 March 2028. These measures follow negotiations between the European Commission and the US aimed at reinforcing a stable and reciprocal transatlantic trade relationship. Collectively, they signal Parliament’s continued confidence in the predictability of EU-US trade relations, while preserving meaningful leverage.
Once activated, the preferential tariffs will apply to US‑origin industrial goods, covering most manufactured products currently subject to EU MFN duties. Selected agricultural and seafood products will also benefit from full or partial exemption, including through tariff‑rate quotas.
Negotiations regarding preferential treatment of lobster and processed lobster products of US origin are expected to continue under an existing separate track.
The European Parliament’s Committee on International Trade introduced several significant additions to the Commission’s proposal on preferential treatment under the EU-US Turnberry Agreement, strengthening EU oversight and ensuring that preferential treatment of US products only proceed under conditions of reciprocity:
Following the European Parliament’s vote, the two legislative proposals will now enter interinstitutional negotiations with the Council of the EU, with a final vote expected in the next two months. Once an agreement on the final text is reached, the measures can be formally adopted and published. However, due to the sunrise clause, the tariff reductions will only apply once the US has verifiably fulfilled its commitments under the Turnberry Agreement. Until then, the measures remain subject to continued monitoring and potential suspension. In practical terms, the agreement establishes a phased and conditional implementation regime, with tariff benefits contingent on continued US compliance.
Klaus Kalsmose Jakobsen
BDO in Denmark
Parliament paired its approval with several “safeguard” mechanisms: a “sunrise clause” tying implementation to verified US compliance, a “suspension clause” enabling the EU to revoke the deal if the US imposes new tariffs and a “sunset clause” setting the agreement to expire on 31 March 2028. These measures follow negotiations between the European Commission and the US aimed at reinforcing a stable and reciprocal transatlantic trade relationship. Collectively, they signal Parliament’s continued confidence in the predictability of EU-US trade relations, while preserving meaningful leverage.
Broad Tariff-Free Trade in Industrial and Agricultural Products
Once activated, the preferential tariffs will apply to US‑origin industrial goods, covering most manufactured products currently subject to EU MFN duties. Selected agricultural and seafood products will also benefit from full or partial exemption, including through tariff‑rate quotas.Negotiations regarding preferential treatment of lobster and processed lobster products of US origin are expected to continue under an existing separate track.
Safeguards and Conditions
The European Parliament’s Committee on International Trade introduced several significant additions to the Commission’s proposal on preferential treatment under the EU-US Turnberry Agreement, strengthening EU oversight and ensuring that preferential treatment of US products only proceed under conditions of reciprocity:
- Strengthened suspension clause: Parliament expanded the suspension mechanism to allow the EU to immediately halt work on granting tariff preferences if President Trump imposes—or threatens to impose—new tariff measures against the EU or any EU member state, including measures linked to foreign policy. The provision underscores that a threat to one member state is treated as a threat to the EU as a whole.
- Introduction of a sunrise clause: Tariff preferences for US products will not take effect automatically, even if the necessary EU legislation is adopted. They will only apply once the US has demonstrably fulfilled its commitments under the Turnberry Agreement, which includes, among others, the reduction of US section 232 tariffs from 50% to 15% on EU products containing less than 50% steel or aluminium.
- Enhanced parliamentary control and monitoring: Parliament added a review clause and new requirements for continuous monitoring of the economic impact of the liberalisation measures on the EU.
- Further conditions regarding steel and aluminium: A new substantive condition has been added: The US must reduce its existing tariffs from 50% to 15% on EU products containing more than 50% steel or aluminium otherwise will the EU preferences for US products be nullified six months after the regulation takes effect.
Next Steps
Following the European Parliament’s vote, the two legislative proposals will now enter interinstitutional negotiations with the Council of the EU, with a final vote expected in the next two months. Once an agreement on the final text is reached, the measures can be formally adopted and published. However, due to the sunrise clause, the tariff reductions will only apply once the US has verifiably fulfilled its commitments under the Turnberry Agreement. Until then, the measures remain subject to continued monitoring and potential suspension. In practical terms, the agreement establishes a phased and conditional implementation regime, with tariff benefits contingent on continued US compliance.Klaus Kalsmose Jakobsen
BDO in Denmark