EU-US Trade Deal Advances; Parliament Pushes Back

The 27 EU member states have approved the European Commission’s trade agreement, though the European Parliament is preparing to challenge elements it considers unfair, particularly after President Trump tripled tariffs on EU products while Brussels eliminated duties on US goods.

On Nov. 28, EU countries agreed to reduce tariffs on US imports under a controversial deal struck last summer between the Commission and the Trump administration, which critics say disadvantaged European exports. The decision comes amid pressure from US trade officials urging EU capitals to implement the agreement quickly, requiring the EU to remove tariffs on most US industrial goods. 

The proposal to introduce a “sunset clause,” ending tariff cuts after five years if the deal is not renewed, was debated but ultimately rejected, reflecting member states’ reluctance to provoke Trump. Although widely criticized as a setback for Europe, the Commission argues that the deal was the best achievable outcome given Trump’s aggressive trade policies, noting that rejecting it would have caused even greater disadvantages. 

On Nov. 28, member states also approved provisions allowing the Commission to suspend the agreement if the United States fails to comply, along with safeguards to temporarily halt it should a surge in US imports threaten the European market.

Both the Council and Parliament must agree on a final text by next spring. While most member states are reportedly open to including a sunset clause, Germany opposes it over concerns about potential US retaliation. The European Parliament’s trade committee, led by German MEP Bernd Lange, has already recommended the clause in his report on the deal’s implementation, which will guide the Parliament’s upcoming debate. Commission officials hope the Council and Parliament will uphold the agreement with Washington, cautioning that any changes could escalate tensions and reignite a trade war.

US-EU Technology Dispute

In addition, EU–US relations have been fragile, as the bloc faces pressure from the United States over digital regulations. Last week, US Secretary of Commerce Howard Lutnick stated that the EU must revise its digital rules to secure a deal lowering tariffs on steel and aluminum. During a Nov. 24 visit to Brussels, Lutnick and Trade Representative Jamieson Greer discussed potential tariff relief in exchange for regulatory changes benefiting US tech firms.

The 2025 US-EU trade deal imposed a 15% US tariff on many EU products, while the EU removed duties on selected US industrial, agricultural, and food exports. Both sides agreed to explore further reductions, including a 50% duty on steel and aluminum. However, recent expansions of US tariffs to previously exempt products have created tension for EU exporters.

EU officials emphasize they will not compromise digital regulations, citing the Digital Services Act and Digital Markets Act, which govern online platforms and marketplaces. At the same time, the EU has ongoing investigations under the DMA into Apple, Google, and Meta. These probes examine whether the companies favor their own platforms, restrict competition, or impose unfair conditions on third parties. Violations could result in fines of up to 10% of global revenue, rising to 20% for repeated breaches, or structural remedies in cases of persistent non-compliance.

This situation places Brussels in a delicate position, balancing demands for steel and aluminum tariff relief against the need to protect its tech regulatory framework.