EU to Eliminate US Import Duties If US Enforces 15% Tariffs on EU Goods
The EU will eliminate import duties on US goods and open its farm market to American produce, conditioned on Washington imposing 15% tariffs on European exports. MEPs demand sunrise and sunset clauses, suspending concessions if Washington breaches terms with EU cuts to expire in March 2028 without compliance.
1. Preliminary Trade Terms Defined
Under last year’s Turnberry agreement, the EU committed to abolish import duties on US industrial goods and grant preferential access to American agricultural and seafood products in exchange for a US pledge to cap tariffs on European exports at 15%.
2. MEPs Demand Safeguards
Members of the European Parliament have proposed sunrise clauses requiring US compliance before tariff cuts take effect and sunset clauses that would revoke EU concessions automatically in March 2028 if Washington fails to honor its commitments.
3. Potential Market Impact
If the deal collapses or the US rejects protective clauses, key European exporters—including carmakers, machinery producers, chemical firms and luxury goods houses—could face sharply higher duties, reigniting trade-war volatility.
4. Upcoming Timeline
Negotiations between Parliament and member states in early June will determine if a final vote can occur by mid-June to meet the July deadline, leaving the EU with a choice between conceding to US terms or risking retaliatory measures.