The European Union is entering a crucial phase in its trade relationship with the United States, as EU governments prepare to begin negotiations with the European Parliament on updates to the EU-US trade arrangement agreed in 2025. Talks on the final agreement between EU institutions are set to start in Brussels next week. Meanwhile, EU Trade Commissioner Maroš Šefčovič is scheduled to travel to Washington later in April to advance discussions with US counterparts.
Sunset and sunrise demands
The core of the current debate within Brussels centres on how much “insurance” the EU needs against future political shifts in the United States. Last month, the European Parliament proposed several amendments that have received a mixed reception from the 27 EU member states represented in the Council. The most significant of these is a “sunset clause”, an automatic expiry date for the trade deal set for March 2028, just months before the next US presidential election.
Many EU governments appear willing to consider such a clause, viewing it as a safeguard against uncertainty in US politics. However, they remain cautious about how strict the expiry should be and whether the timeline should change. Diplomats have stressed that the exact timing and flexibility of this sunset clause remain fully open to negotiation, signalling that significant compromises may still lie ahead.
Far more controversial is the proposed “sunrise clause.” This would make the entire deal conditional on the US first removing or reducing tariffs on European steel and aluminium. While Parliament views this as a necessary “carrot” to ensure American cooperation, several national governments fear it could destabilise the agreement before it even begins. With President Trump having already lowered some of these tariffs, the Council is pushing for more flexibility to avoid irritating Washington and risking a renewed trade war.
Trade Commission Šefčovič heads to Washington to advance talks
As internal negotiations begin in Brussels, the EU’s top trade official, Maroš Šefčovič, is packing his bags for a pivotal visit to the United States in late April. His primary objective is to advance the implementation of the Joint Statement and to tackle a growing list of “misunderstandings” regarding digital policy.
Mr. Šefčovič’s visit may also cover broader areas of cooperation. Topics expected to feature in discussions include critical raw materials and technology regulation. The United States has expressed concerns that EU digital rules could act as trade barriers. While these issues were deliberately left out of last year’s trade truce, they remain a potential source of tension. Dialogue during the Washington visit could help clarify misunderstandings and prevent future disputes.
What’s next
If negotiations progress smoothly, EU diplomats believe the Union could implement its side of the agreement as early as June 2026. The coming weeks will involve interinstitutional discussions through a process known as “trilogue negotiations,” where representatives from the European Parliament, the Council, and the Commission work together to agree on a final legal text.
The coming weeks will reveal whether the EU can agree on a final text. While the European Parliament wants to exert more influence over how the deal is managed, the Commission is urging member states not to undermine or destabilise the agreement. The goal is to keep enough room for manoeuvre to adapt to a rapidly changing global economy.
