The European Parliament is poised to significantly alter the terms of its recently agreed-upon tariff agreement with the United States, signaling a deepening rift and raising questions about the long-term stability of transatlantic trade relations. A report spearheaded by Member of the European Parliament Bernd Lange (SPD) and reported across Germany’s “Redaktionsnetzwerk Deutschland” indicates a hardening stance against potential US protectionist measures.
The proposed revisions include a provision to suspend the tariff deal immediately if former President Trump, should he regain power, announces new tariffs or attempts to pressure the EU into weakening its product standards or the landmark Digital Services Act to benefit US corporations. This represents a direct challenge to what many perceive as Trump’s history of leveraging trade threats to achieve political and economic concessions.
Furthermore, the agreement will be strictly time-bound to 18 months, with mandatory reviews scheduled after six and twelve months to assess the impact on European businesses. The zero-tariff provision for steel and aluminum exports to the US is contingent upon the removal of earlier imposed duties of 50% on 407 steel and aluminum derivative products. To safeguard the European market, the report recommends automatic activation of additional, zero-tariff import quotas for any US product experiencing an export increase exceeding 10% within the EU.
Bernd Lange anticipates a forceful reaction from the US government but expressed confidence in upholding these adjustments. “If Trump protests, we will stand our ground” he stated, demonstrating a willingness to confront potential backlash. While emphasizing the importance of honoring agreements, Lange also acknowledged the precarious nature of US trade policy under previous administrations and voiced concerns about potential future actions. He specifically highlighted Trump’s prior imposition of additional tariffs, threats of future levies and attempts to secure exemptions from EU legislation for US companies, stating that the unpredictable nature of his policies poses a critical instability.
The suggested measures essentially aim to compel the US to adhere to internationally recognized rules and prevent further manipulation of trade negotiations for political gain, a clear indication that the EU is determined to protect its economic sovereignty and regulatory autonomy even if it strains transatlantic relations. The move underscores a growing awareness within the EU Parliament that the stability of trade agreements relies on predictable and mutually respectful conduct, something that has consistently been lacking in US trade dealings.