EU backs new tariff rules with protection for aluminium and steel industries

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The European Parliament has given final approval to two pieces of legislation implementing tariff commitments agreed under the August 2025 EU-US joint statement. The main regulation removes tariffs on all US industrial goods and grants preferential market access for a range of US seafood and agricultural products. This includes specific provisions for the aluminium sector, addressing US tariffs on aluminium and steel derivatives.

In August 2025, the United States added 407 categories of derivative steel and aluminium products to its tariff list. It raised concerns within the European Union over growing trade uncertainty. In contrast, the European Commission will have the authority to suspend tariff preferences granted to the United States if, by December 31, 2026, the US continues to apply tariff rates above 15 per cent on EU steel and aluminium derivative products. The Commission is also required to submit a report to the European Parliament and the Council by December 1, 2026, on the tariff treatment of steel and aluminium derivatives.

The legislation also contains a strengthened suspension clause. This allows the Commission to take action if the United States fails to address EU concerns regarding the tariff treatment of Union exports that previously benefited from the 15 per cent all-inclusive tariff ceiling until February 24, 2026. In addition, lawmakers approved a safeguard mechanism that would allow the EU to investigate and respond if tariff preferences granted to the US result in import increases that threaten serious injury to European industries, including manufacturing, steel, aluminium and agriculture. Investigations can be launched by the Commission on its own initiative or based on information provided by member states or the European Parliament.

Another key feature of the legislation is a sunset clause. The regulation covering industrial and agri-food imports will expire on December 31, 2029 unless renewed. The Commission must assess its impact on EU industry, agriculture, small and medium-sized enterprises, and trade flows with third countries.

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International Trade Committee Chair, Bernd Lange, also the standing rapporteur for the US, said, “Despite the pressure, Parliament stood its ground throughout these negotiations. Our determination has paid off, delivering a stronger agreement for European businesses and citizens and far more robust guardrails than originally envisaged." 

The measures stem from the tariff and trade agreement reached in Turnberry, Scotland, on July 27, 2025, between US President Donald Trump and European Commission President Ursula von der Leyen. Following formal approval by the European Parliament, the legislation now awaits final approval from the Council before entering into force after publication in the EU Official Journal. 

For aluminium producers and downstream manufacturers, the new framework provides clearer guidance on future tariff treatment. However, it keeps tools that will allow the EU to act if trade rules related to steel and aluminium products are not respected.