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| EU-US Joint Statement |
The EU Member States gave their final approval to a new transatlantic trade agreement on June 25. This formal adoption completes the legislative process to stabilize trade relations between the two economic powers. However, unresolved differences regarding metal tariffs still strain the relationship between Washington and Brussels.
Safeguards and Expiry Dates Safeguard European Interests
European lawmakers added several strict safeguard measures to the newly signed regulations. For instance, the European Commission can suspend the transatlantic trade agreement if Washington fails to fulfill its obligations. Meanwhile, the European Parliament set a firm expiry date for the agreement at the end of 2029.
Tariff Modifications and Strained Metals Trade Negociations
The bloc will remove tariffs on US industrial products under the conditions of the current deal. In return, the United States will apply a 15 percent tariff cap on European exports. Nevertheless, the parties still face deep divisions regarding US steel and aluminum tariffs under this transatlantic trade agreement.
ScrapInsight Commentary
This agreement temporarily averts a full-scale trade war but fails to resolve the damaging 50 percent US steel tariff bottleneck. Consequently, European steel exports to the US will likely remain depressed by a third, forcing local scrap processors to rely heavily on domestic EU consumption. Policymakers must establish a dedicated metals framework before 2029 to ensure long-term market stability and protect regional recycling margins.
