26 March 2026, the European Parliament approved the so-called Turnberry Deal with the United States. Under this trade agreement, the European Union (EU) will largely eliminate import tariffs on American industrial goods and agricultural products. The US may impose a tariff of up to 15 percent on most products from the EU. However, the Parliament has set clear conditions for the trade agreement, which is controversial within the EU. Member states still need to approve it.
The European Parliament stipulated that the new trade tariffs would only take effect if the US guarantees that it will adhere to previously made agreements and lower import tariffs on certain European products. With this “sunrise clause,” the Parliament aims to prevent European companies from being disadvantaged.
Suspension clause tightened
To ensure that the US adheres to the agreements, the Parliament has tightened the suspension clause. This allows the European Commission to temporarily suspend trade benefits if the US fails to comply with the agreements. For example, if the US imposes additional import tariffs exceeding the 15 percent threshold or imposes new duties on European goods. The EU can also take measures in response to other developments.
Even if imports from the US rise sharply and European companies are at risk of facing difficulties as a result, the Commission can intervene. This applies, for example, if imports of US goods in a specific product group increase by 10 percent.
Steel and Aluminum
The sunrise clause also stipulates that US tariffs on European products containing less than 50 percent steel and aluminium must be reduced to a maximum of 15 percent. An additional condition applies to European products containing more than 50 percent steel and aluminium. If the US does not lower its tariffs to this level, the trade benefits for US steel and aluminium exports will expire after six months.
Expiration date: March 31, 2028
Parliament has also set a clear expiration date for the Turnberry deal concluded in July 2025: March 31, 2028. US President Donald Trump’s term in office ends at the end of that year. The agreement’s term can Only be extended through a new legislative proposal and a comprehensive impact assessment.
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