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Trade MEPs Wave Through The US Tariff Deal With Trimmed Guards

Lawmakers on the European Parliament’s international trade committee signed off on both halves of the legislation enacting the bloc’s tariff truce with Washington on 2 June, clearing the package by 31 votes to six with three abstentions and sending it toward a plenary showdown on 16 June. The margin was comfortable, but the debate that produced it was not, and the compromise that emerged tells you a good deal about how nervous the Union remains about trusting a deal struck under pressure.

The agreement traces back to the Turnberry framework, the understanding reached to halt an escalating tariff spiral with the United States. Under the implementing regulation, the Union will start lifting duties on American industrial goods and a slice of agricultural products, the concrete down payment Brussels promised in exchange for relief on its own exporters. For carmakers, machinery firms and food producers who spent much of last year pricing in retaliation, the vote is the first solid signal that the truce will actually take legal effect rather than dissolve into fresh threats.

What makes the file interesting is the scaffolding the committee built around it. The regulation carries a sunset clause that retires it at the end of 2029, conveniently outliving the current occupant of the White House by the better part of a year, so the concessions cannot quietly harden into permanent fixtures. More pointedly, the text lets Brussels suspend the tariff preferences if Washington has not aligned its steel and aluminium duties with the agreed terms by the close of 2026. The message is unsubtle: the Union will lower its guard, but it is keeping a hand on the switch.

That conditionality was the price of getting the centre-left on board. Social Democratic members spent the negotiations pressing for what they called real safeguards for European workers and businesses, wary of a deal that hands away leverage before the other side has proven good faith. They claimed those guarantees as a victory, framing the suspension mechanism and the expiry date as proof that the Parliament refused to sign a blank cheque. The arithmetic suggests the framing worked.

Opponents read the same text and saw capitulation dressed as caution. Six members voted against, arguing that even a time-limited, suspendable set of concessions rewards coercive tariff diplomacy and sets a precedent the Union will regret the next time a large trading partner reaches for the same lever. Their objection is structural rather than technical: once the bloc demonstrates it will trade tariff cuts to make a threat go away, it invites the threat to return.

Member states’ permanent representatives had already given the text a green light ahead of the committee, so the institutional pieces are falling into place for the Strasbourg vote in mid-June. Approval there would convert a political handshake into binding law and let the first duty reductions begin. The wider question hanging over the result is whether a deal engineered with so many escape hatches signals confidence or its absence. The Union has secured relief for its exporters and written itself an exit if the bargain sours. Whether that combination reads as shrewd hedging or quiet anxiety will depend on what Washington does with its own side of the ledger before the year is out.