Tariff suspension for US imports takes hurdle in European Parliament

In the trade deal reached by the United States and the European Commission in 2025, the EU committed to lowering tariffs on US imports. On 26 March 2026, the European Parliament approved a draft regulation that would temporarily halt the levying of tariffs on US imports. The text will now be forwarded to the Council. If the Council endorses the proposal, the regulation will be published in the Official Journal of the European Union and enter into force. If the Council rejects the text, further negotiations and revisions will be required.

We provide an overview of the key elements of the text approved by Parliament. Please note that this reflects Parliament’s position in the upcoming talks with the EU member states and that changes are possible. Therefore, the points below should only be understood as clues as to how the future EU tariff regime vis‑à‑vis the United States may be shaped.

Suspension of tariffs and introduction of tariff quotas

A broad range of industrial and agricultural goods from the United States will no longer be subject to EU import tariffs. This includes chemicals, plastics, iron, steel, goods made from iron or steel, electrical machinery and equipment, vehicles, and vehicle parts. For many agricultural products, the regulation introduces tariff quotas. Details will be set out in the annexes to the regulation. The annexes to the draft regulation proposed by the European Commission can serve as orientation.

When will tariffs be suspended?

Tariffs will only be suspended once the United States fulfils its part of the trade deal and adjusts its import tariffs on steel and aluminum from Europe (max. 15% on goods containing less than 50% steel and aluminum). This means tariffs will not be suspended immediately after the regulation enters into force. Rather, the European Commission must first assess whether the United States meets these conditions. Only once they are fulfilled can the Commission suspend EU tariffs on US imports.

What rules apply to steel and aluminum?

The EU will suspend EU import tariffs on steel, aluminum, and related products from the United States. In the trade deal, both sides agreed to continue talks on steel and aluminum tariffs and to develop a joint strategy to address global overcapacity. The regulation requires the Commission to work towards a mutually beneficial solution. To support negotiations, EU tariffs on steel and aluminum imports from the US will be suspended six months after all other tariffs – unless the US and EU reach an agreement earlier.

How long will tariffs be suspended?

The adjusted tariff rates and tariff quotas will apply until 31 March 2028, provided the United States adheres to the trade deal. If the US deviates from the deal, the European Commission may revoke the suspension. In such a case, imports from the US would once more be subject to tariffs. The Commission may also reinstate tariffs if the US introduces new tariffs on products not covered by the deal, or if the US undermines the sovereignty of the EU or any Member State or acts against the EU’s foreign or security policy interests.

Refund of paid tariffs

The text contains no provisions enabling the reimbursement of tariffs already paid or still to be paid. Although the political agreement on tariff reductions was reached last year, tariffs will not be reduced retroactively. Instead, the text provides the legal basis for suspending tariffs in the future. Tariffs paid – or still payable – between the political agreement and the suspension will not be refunded.

Context and next steps

The European Union remains committed to the 2025 trade deal. At the same time, the text put forward by parliament highlights how much trust the United States has lost. Following repeated tariff threats, the dispute over Greenland’s sovereignty, and confusion caused by a recent US Supreme Court decision on IEEPA tariffs, Members of Parliament added several safeguard mechanisms to the Commission’s proposed regulation. These provisions would enable the EU to swiftly adjust its tariff policy towards the United States if the US failed to honor the trade deal or if the transatlantic relationship deteriorated for other reasons. Trilogues on the text will begin in April, during which the final content of the regulation will be negotiated.