European Union negotiators have reached a provisional agreement on key safeguard provisions for the EU-US trade deal, according to two sources close to the talks. The compromise would allow Brussels to suspend tariff reductions if a surge in American imports disrupts the European market, addressing long-standing concerns from the European Parliament.
The deal, which would cut EU tariffs on US goods to zero, has been under intense pressure from the Trump administration. Washington has threatened to double tariffs on European cars unless the European Parliament approves implementation by 4 July.
MEPs have been pushing for tougher conditions since the agreement was struck last summer between President Trump and European Commission President Ursula von der Leyen. They argue the pact must not become a vehicle for extortion of the EU.
Key Clauses Agreed, but Timing Remains Sticking Point
Negotiators have agreed in principle on a safeguard mechanism that would allow the EU to reimpose tariffs on US industrial goods if a surge in imports causes market disruption. The exact wording of the clause is still under discussion. A sunset clause that would automatically terminate the deal unless renewed has also been agreed in principle, though the final timeline—originally proposed by Parliament as March 2028—remains under negotiation.
However, talks are at a standstill over a proposed “sunrise clause” defining when the agreement would begin to apply. The European Parliament wants implementation to start only once Washington complies with a 15% tariff cap, while the European Commission opposes this condition and wants immediate implementation, one source said.
The sunrise clause was introduced by MEPs after a US Supreme Court ruling in February declared the 2025 US tariffs illegal, prompting Washington to impose new duties on EU goods that now average above the agreed ceiling, violating the deal.
Commission Resists Anti-Coercion and Territorial Integrity Provisions
The European Commission is also pushing to remove references to the EU’s Anti-Coercion Instrument—the bloc’s trade bazooka that could curtail US access to the European single market in unprecedented ways. This tool, designed to counter economic pressure from third countries through measures including restrictions on licenses and intellectual property rights, was repeatedly discussed during transatlantic trade tensions last year but never approved.
Additionally, the Commission is pushing back against provisions allowing the suspension of the deal if President Trump were to threaten the bloc’s territorial integrity again. Following Trump’s threats earlier this year to target EU countries refusing to support a US acquisition of Greenland, MEPs added provisions allowing suspension in the event of threats to the EU’s territorial integrity.
These internal rifts come as EU negotiators face pressure from multiple fronts. The European Parliament has been delaying a vote to implement the accord, arguing it needed to be rebalanced and include clauses to protect the EU’s interests. The deal currently sees tariffs tripling on EU goods entering America (though the duties are not stackable), while US industrial goods are reduced to zero.
EU negotiators are aiming to finalise the agreement by June ahead of a plenary vote in the European Parliament the same month, in time for the 4 July deadline set by Trump. The outcome will have significant implications for transatlantic trade relations and the broader European economy.
For more on the broader context of EU-US trade tensions, see our earlier analysis: EU Negotiators Face Internal Rifts Ahead of Key US Trade Talks.
