Yesterday, the European Parliament approved two pieces of legislation that implement the EU’s tariff commitments on all US industrial goods and provide preferential market access for a broad range of US agricultural and seafood goods, while extending the tariff-free imports of lobster and lobster products.
It took slightly less than nine months for the European Parliament to finally ratify the parts of the EU-U.S. trade deal relevant to American agricultural and industrial products, following the meeting between European Commission President Ursula von der Leyen and U.S. President Donald Trump in Scotland last summer. The EP’s decision will still have to be greenlighted by the Council of the EU – with all the 27 EU Member States present.
While the original Turnberry agreement laid out a commitment to implement a tariff framework to support industries on both sides of the Atlantic, it also bound both sides to work on eliminating non-tariff barriers. Thus far, however, little tangible progress appears to have been made on either side.
The EU and the U.S. have clear historical pitfalls to learn from – most notably the Transatlantic Trade and Investment Partnership (TTIP). Though TTIP could have brought immense benefits to both economies and protected them from unfair non-tariff barriers, the initiative ultimately stalled and went nowhere.
A highly transactional and tense relationship over the past years has pushed transatlantic trade negotiations further than ever before. Both sides must now cooperate to eliminate non-tariff barriers and honor their commitments. If this trust is compromised, consumers across the Atlantic will face an even longer regulatory standstill than the decade-long freeze that followed the collapse of TTIP.
Both parties are violating the spirit of the deal
Shortly after the Turnberry agreement, the U.S. Department of Commerce added 407 product categories to its list of steel and aluminium derivative products subject to a 50% tariff. Furthermore, on April 2 of this year, the U.S. altered its application methodology, applying these tariffs to the full customs value of imported products rather than just their metal content. To prevent further deviations, the European Parliament set a strict deadline: if the US maintains tariffs above 15% on EU steel and aluminum derivatives after December 31, 2026, the deal can be suspended.
The EU has built in a ‘killswitch’ for the trade deal: the Commission will assess its economic impact by June 30, 2029, to decide on its extension. Additionally, Article 3 allows immediate suspension of tariff concessions if Washington triggers retaliation through actions like presidential import surcharges.
On the American side, there is growing concern over upcoming EU legislative initiatives that could inadvertently erect new non-tariff barriers before existing ones have been fully addressed. This brings additional friction to the relationship and shadows the prospects for future cooperation.
Positive developments
Following the critical minerals partnership agreement signed on April 24, 2026, the EU appears almost ready to join the U.S.-led Pax Silica technology alliance. While member states like Greece, Sweden, and Finland have chosen to align individually, some European nations are concerned over the U.S.-proposed price-support and stabilization framework, fearing Washington intends to unilaterally dictate mineral pricing.
Concurrently, European leaders expect the U.S. to reciprocate by backing multilateral efforts to counter global steel overcapacity, which remains driven by state-subsidized Chinese manufacturing.
On the energy front, the EU’s REPower framework – strengthened in January 2026 – is on track to completely eliminate dependence on Russian gas by autumn 2027 by shifting to American LNG.
Furthermore, Brussels has moved ambitiously to shield its infrastructure and critical supply chains from Chinese interference. Ambitious regulatory initiatives like the Industrial Accelerator Act (IAA) and the updated Cybersecurity Act have established strict local-content and “trusted partner” requirements, drawing a predictably cold reception from Beijing.