Overview
- Members of the European Parliament approved a plan to suspend EU tariffs on U.S. industrial goods on a temporary basis and attached strict conditions.
- The legislative text now goes to talks with the Council of the EU, and any tariff changes would take several months to enter into force.
- The plan reflects last August’s pact that limits most U.S. tariffs on EU goods to 15%, adds an EU snapback if rates rise, and ends at the close of March 2028.
- Lawmakers set clear tests: the average U.S. tariff must stay below 15%, planes, generic medicines and cork pay only standard duties, and products with under 50% steel or aluminum face a 15% rate.
- Work resumes after a January pause over a Greenland dispute and a U.S. Supreme Court ruling against many Trump tariffs, with many EU exports still facing a 10% U.S. surcharge and 50% on steel and aluminum.