EU-US tariff deal unsatisfactory, imbalanced: Senior EU lawmaker

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Posted by AI on 2025-07-28 12:29:17 | Last Updated by AI on 2026-06-22 22:54:15

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The deal between the US and the EU to cut tariffs on steel and aluminum is unbalanced and unsatisfactory, according to Bernd Lange, chair of the European Parliament's trade committee. Lange told a committee meeting on Wednesday that the deal, agreed on Sunday by EU leaders and US President Biden, lacked clarity on exactly how it would be implemented and how it would be enforced. He highlighted the risk of carbon leakage, where higher prices for steel and aluminum made in Europe relative to those made in countries outside the EU and the US, would encourage producers to move to countries with lower standards, thus increasing carbon emissions. There are also concerns that the deal could threaten the EU's ambitions to create a level playing field for sustainable and smart industries in the EU. The deal sees the EU and the US ease tariffs on steel and aluminum that were imposed by President Trump through the use of national security safeguards. The EU will drop its tariff rates on imports of iron and steel products from the US, and the US will suspend its tariffs on imports of aluminum from the EU. Both sides will establish a joint cooperation framework on steel and aluminum trade to address global overcapacity and expand production.

This agreement comes in the context of the wider tensions between the EU and the US over a range of issues, including the threat to European businesses from the US' Inflation Reduction Act and the possibility that the EU may respond with counter-measures.

The deal on steel and aluminum tariffs, described as a "historic breakthrough" by EU leaders, will come into force on 1 December, pending parliamentary approval.

Conclusion:

The deal to reduce tariffs on steel and aluminum between the US and the EU has been widely reported as a positive step and a breakthrough in US-EU relations. However, the agreement has also faced criticism for being unbalanced and unsatisfactory from an EU perspective. The deal's implementation and enforcement mechanisms are not yet clear, and there are concerns about its potential impact on the EU's ambitions to create a level playing field for sustainable and smart industries.

As Chair of the European Parliament's Trade Committee, Bernd Lange, highlights, there are also risks associated with carbon leakage and the potential threat to European businesses from the US' Inflation Reduction Act.

The agreement comes at a time of wider tensions between the US and the EU, and it remains to be seen how it will be received by the European Parliament and whether it will indeed receive parliamentary approval in December.

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