European Parliament backs trade pact with US steel derivative curbs in Commodity News 22/05/2026 The European Parliament and Council reached a provisional agreement May 20 on two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US joint statement that includes a sunset clause expiring by the end of 2029 and provisions allowing Brussels to suspend tariff preferences if Washington maintains high duties on steel and aluminum derivatives. The agreement strengthens oversight of steel and aluminum trade flows between the two economic blocs by empowering the European Commission to suspend tariff preferences if the US continues applying tariff rates above 15% on EU steel and aluminum derivatives beyond Dec. 31. The commission must report to the parliament and council by Dec. 1 on the tariff treatment of these products, which became subject to increased US duties in August 2025 when Washington added 407 product categories to its list of derivative steel and aluminum products facing tariffs. Steel sector impact The steel and aluminum provisions address market instability that was created when the US expanded tariffs on derivative products last year, according to the agreement text. Parliament pushed to include language on derivatives in the main regulation, viewing the August 2025 US tariff expansion as increasing trade uncertainty for European steel producers and aluminum manufacturers. The agreement establishes a safeguard mechanism that allows the commission to investigate whether tariff preferences granted to the US lead to import surges that threaten serious injury to the EU industry, including the agricultural sector. The commission will be able to start an investigation on its own initiative, or on the basis of information provided by one or more member states or by the European Parliament. The commission will also report to the parliament and the council on a quarterly basis on changes in trade volumes and values of US exports of the g