The bloc wants to be able to counteract a possible surge in American imports

EU governments want to include safeguards and a review clause in the bloc’s tariff agreement with the US, Reuters reports.

In this way, EU members are seeking to counter fears that a possible surge in US imports could harm European industry.

The July agreement between the parties provides for a fixed tariff rate of 15% for most goods exported from the bloc to the US. The EU, in turn, is abolishing many tariffs on US imports, which must be approved by the European Parliament and EU governments.

At the end of last week, EU government ambassadors reached a common position. They agreed to abolish import taxes on US industrial goods and to create duty-free quotas for certain seafood and agricultural products.

However, they want the bloc to have the right to suspend the tariff changes in whole or in part if this leads to a sharp increase in imports from the US that causes or threatens to cause serious damage to EU industry. The European Commission will consider possible precautionary measures after a request from member states.

EU governments also want the EC to monitor the impact of tariff changes on the EU market and report on this by the end of 2028.

The final text of the relevant legislation will be adopted after negotiations between EU governments and the European Parliament.

The latter is expected to decide on its position at the end of January. It is considering proposals for similar safeguard measures, as well as an 18-month provision to terminate the agreement and a response mechanism if the United States deviates from the agreements.

The Parliament’s proposals also include a demand that the US lift the 50% tariffs on 407 steel and aluminum products, such as wind turbines and motorcycles, introduced in August this year after the agreement was concluded. If this does not happen, the EU will maintain tariffs on such American products until a decision is made on this issue.

As noted in the European Council’s statement, the EU and the US have the largest bilateral trade, integrated economic and investment relationship in the world, accounting for almost 30% of global trade in goods and services and 43% of global GDP.

Over the past decade, trade in goods and services between the parties has doubled, reaching around €1.7 trillion in 2024. In 2023, EU and US companies invested more than €4.7 trillion in each other’s markets.

It should be recalled that the US is demanding that the EU regulate the technology sector in a more balanced manner in exchange for lowering tariffs on steel and aluminum imports. This was announced after a meeting between the parties in Brussels on November 24.