On 28 August, the European Commission officially tabled a new legislative proposal to eliminate tariffs on a range of industrial goods from the United States. The move, stemming from the EU-U.S. tariff deal and the Joint Statement of 21 August, seeks to de-escalate trade tensions between the two major economic blocs. However, the proposal faces a significant hurdle as it enters the EU’s legislative process, with opposition mounting from key political groups within the European Parliament.
The legislative proposal, which lists a wide range of industrial and agricultural goods is not a done deal. The European Commission has tabled it under the “ordinary legislative procedure”, which means both the European Parliament and EU Member States in the Council have the power to amend, or even block, the proposal entirely.
The political landscape in the European Parliament is proving particularly challenging. While the centre-right European People’s Party (EPP) has largely supported the deal, the second-largest group in the European Parliament, the Socialists and Democrats (S&D), has broken ranks. Iratxe García Pérez, president of the S&D group in the EP, stated, “We firmly oppose the agreement.” This opposition complicates the job of Commission President von der Leyen, a member of the EPP, who needs a majority to enact the tariff truce.
The opposition extends beyond the Parliament. Leading Socialist figures within the EU’s institutions, such as European Commission Executive Vice-President Teresa Ribera and European Council President António Costa, have also voiced their concerns. Mr. Costa acknowledged the “frustration felt by many Europeans, who perceive the Union as having been too passive.” He further admitted that the EU may have conceded “unfair terms” to the Trump administration to secure its support on the war in Ukraine.
The trust problem
Another significant factor undermining the EU-U.S. deal is the growing lack of trust in the Trump administration’s commitments. The U.S. has yet to lower its tariffs on European cars, a key part of the original agreement. At the same time, the administration has repeatedly issued tariff threats against the EU’s new digital rulebook, which includes the Digital Services Act (DSA), the Digital Markets Act (DMA), and the AI Act.
This has led to senior EU officials, including European Commission Executive Vice-Presidents Séjourné and Ribera, publicly questioning the overall agreement. Both have warned that the deal may need to be “reviewed” or even “dropped altogether.”
This uncertainty makes the future of the legislative proposal unpredictable. The deal’s most immediate test will be in the European Parliament, where Bernd Lange, Chair of the International Trade (INTA) committee and member of S&D, has refused to commit to ensuring its approval. With this potential blockade in Parliament, the timeline for the proposal is currently unstable and politically fraught.
