EU–United States Turnberry Agreement: European Parliament Approval Despite U.S. Tariffs – Towards Tariff De-escalation? Under What Conditions?

Against a backdrop of persistent trade tensions between the European Union and the United States, the Turnberry Agreement represents an attempt to stabilise the transatlantic tariff framework. The European Parliament’s approval, subject to substantial safeguards, reflects a more structured approach to trade liberalisation. Combining partial tariff elimination with safeguard mechanisms, the agreement seeks to strike a balance between market openness and the protection of European economic interests.

In a context of ongoing trade tensions between the European Union and the United States—characterised by the proliferation of unilateral tariff measures and increased uncertainty for economic operators—the Turnberry Agreement, concluded in summer 2025, forms part of a broader effort to stabilise transatlantic trade relations. After initially suspending its position, the European Parliament unexpectedly approved the agreement on 26 March, subject to substantial guarantees. This vote confirms the Union’s intention to reconcile trade liberalisation with the protection of its economic and strategic interests.

The agreement notably provides for the elimination of EU customs duties on the majority of U.S. industrial products, alongside expanded access to the European market for certain agricultural and fisheries products. In return, European exports to the United States would be subject to a tariff cap of 15%, reflecting a logic of stabilisation rather than full liberalisation of trade.

From a legal standpoint, the agreement falls within the European Union’s exclusive competence in the field of common commercial policy, pursuant to Article 207 of the Treaty on the Functioning of the European Union (TFEU), and follows an adoption process involving both the Council and the European Parliament. At this stage, the Parliament’s approval constitutes a key but not final step, as the agreement must still be formally adopted and implemented in accordance with the applicable procedures. It therefore remains an agreement in the process of finalisation, with entry into force contingent upon completion of the institutional process.

Aware of the risks associated with potential imbalances in concessions or adverse developments in U.S. trade policy, the European Parliament has introduced several safeguard mechanisms. A suspension clause allows for the reintroduction of tariffs in the event that U.S. measures exceed the 15% cap or discriminate against European operators. A so-called “sunrise” clause conditions the effective entry into force of certain concessions on U.S. compliance with its commitments, notably regarding tariff reductions in sensitive sectors such as steel and aluminium. Finally, a “sunset” clause provides for a limited duration of the agreement, with an expiry date set for 31 March 2028, its renewal being subject to a comprehensive evaluation of its effects.

These mechanisms reflect a notable evolution in the European Union’s trade practice, characterised by increased contractualisation of safeguards and a clear intention to preserve its capacity to respond to trading partners perceived as unpredictable. They also illustrate a more pragmatic approach to trade policy, grounded in a balance between openness and protection.

In practical terms, if definitively adopted, the agreement should enhance predictability for economic operators by limiting tariff fluctuations and clarifying conditions of access to the U.S. market. However, its conditional and potentially reversible nature maintains a degree of legal uncertainty, requiring companies to closely monitor developments in the regulatory framework and in transatlantic trade relations.

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