European Parliament included mechanism to suspend tariff benefits if the US fails to comply with the agreement
The European Union reached, this Wednesday (May 20, 2026), a provisional measure to implement the trade pact signed with Washington last year, under of the President of the United States, (Donald Trump). The measure seeks to avoid a new tariff escalation and reduce tensions between the two sides.
The agreement was reached after negotiations between the European Parliament and the 27 countries in the bloc. In a statement, the EU’s rotating presidency, currently held by Cyprus, reported that there was consensus to apply the “tariff elements” of the agreement signed between Europeans and North Americans.
Trump threatened to raise tariffs
O closed in July 2025 in Turnberry, Scotland, set 15% tariffs on most European products exported to the US. In return, the EU promised to eliminate tariffs on American products, something that had not yet been implemented.
Given the delay, Trump gave the bloc until July 4th to put the agreement into practice. The North American president even threatened to increase tariffs on European cars and trucks from 15% to 25%.
European Parliament relaxed demands
The negotiations faced resistance from the European Parliament, which wanted stricter mechanisms to protect the bloc in case the US failed to comply with the agreement.
The final text aims at a mechanism for suspending tariff benefits if Washington violates the terms of the pact. MEPs also agreed to give the US until the end of the year to remove surcharges on steel components.
The president of the European Parliament’s International Trade Committee, Bernd Lange, stated that the agreement maintains safeguards to protect the European economy.
Despite recent tensions between the 2 sides, European Commission President Ursula von der Leyen that the European Union intends to comply with the pact to preserve relations with its main trading partner.
