EU-US Trade Agreement Moves Toward Approval as Steel and Aluminium Tariff Risks Remain

Steelmaking

EU-US trade agreement approval moved closer after the European Parliament’s trade committee backed legislation to implement the deal reached last July. The committee voted 29-9 with one abstention, signalling a clear majority before the expected plenary vote on 26 March.

The EU-US trade agreement is designed to provide stability in transatlantic trade after years of tariff pressure, industrial disputes, and geopolitical tension. However, the committee’s position shows that Europe wants stronger safeguards before implementation becomes final.

The EU-US trade agreement remains especially important for metals-intensive sectors. Steel, aluminium, machinery, automotive components, and industrial equipment all sit directly inside the tariff debate.

Parliament Seeks Safeguards Against New US Tariffs

The trade committee wants a suspension clause if the US imposes new tariffs on EU states. It also wants implementation to depend on US compliance with the agreement and stronger protection against steel import pressure.

German lawmaker Bernd Lange said the legislation aims to provide stability, but he warned that tariffs imposed on the EU or individual member states over foreign policy decisions would be unacceptable. His comments reflect European concern that trade policy could again become linked to wider political disputes.

The committee’s position also targets the treatment of EU products containing steel or aluminium. Lange called on the US to reduce tariffs on EU products containing less than 50pc steel or aluminium from 50pc to 15pc before the EU completes implementation.

Steel and Aluminium Remain Central to Transatlantic Trade Tensions

Section 232 tariffs remain the key industrial issue. Lange warned that if Section 232 tariffs rise from 10pc to 15pc, many EU products could face effective duties above the 15pc ceiling once most favoured nation tariffs are added.

That risk matters because many manufactured goods contain embedded steel or aluminium. Higher effective tariffs could hit machinery, automotive parts, appliances, industrial components, and downstream manufacturing supply chains.

The committee’s backing still suggests broad support for the deal. Swedish lawmaker Jorgen Warborn said the EU should uphold its commitments, while also calling for safeguards against new US tariffs. That position captures the political balance: Europe wants the stability of the agreement, but not at the cost of accepting future unilateral tariff measures.

The Metalnomist Commentary

The EU-US trade agreement may reduce uncertainty, but metals remain the stress test for transatlantic trade. Steel and aluminium tariffs are no longer narrow trade tools; they are industrial policy instruments that shape competitiveness across entire manufacturing chains.