Global Daily Tax News, EU Lawmakers To Cut Tax For US Goods, Subject To Greenland Guarantees, (Feb 6, 2026)

Lawmakers on the European Parliament's International Trade Committee have said progress can be made towards formally implementing commitments in a trade deal brokered in summer last year with the United States providing the US continues to respect the territorial integrity and sovereignty of the Union and its member states and honors the terms of the Turnberry Deal.

In July 2025, the EU and the US reached a political agreement on tariff and trade issues (the "Turnberry Deal"). These were outlined in detail in an August 2025 joint statement announcing an EU-US Framework Agreement. The Commission then published two legislative proposals aimed at implementing certain tariff aspects of the EU-US Framework Agreement. At the time, the Commission said: "The political agreement of July 27, 2025, is not legally binding. Beyond taking the immediate actions committed, the EU and the US will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement."

Following a February 4, 2026, meeting of the committee's shadow rapporteurs (that is, political group representatives responsible for work on the legislation linked to the implementation of the so-called Turnberry Deal), Bernd Lange, chair of Parliament's International Trade Committee, said: "A majority of shadow rapporteurs of the International Trade Committee have today decided to resume work on the two Turnberry legislative proposals. A vote could therefore potentially take place at the next committee meeting on February 24, 2026."

"Trade Committee members remain committed to advancing work on the two legislative proposals expeditiously, provided the US respects the territorial integrity and sovereignty of the Union and its member states, and honors the terms of the Turnberry Deal."

"In this spirit, we have also agreed to include among the grounds for suspension of the tariff preferences granted under both legislative proposals threats to the essential security interests of the Union or its member states, including their territorial integrity."

The deal with the US involves establishing a single, all-inclusive US tariff ceiling of 15 percent for EU goods. The Commission earlier said, as of August 1, the US will apply this maximum tariff on the vast majority of EU exports. It is an all-inclusive tariff rate and represents a ceiling, including the US most favoured nation (MFN) tariff that was previously stacked on top of additional tariffs the US introduced, the Commission added.

In this respect, the Commission confirmed specifically:

• The 15 percent ceiling applies to nearly all EU exports currently subject to reciprocal tariffs (except where the US MFN tariff exceeds 15 percent, in which case only the MFN tariff applies with no additional tariffs on top);

• The 15 percent ceiling applies also to cars and car parts, currently subject to a tariff rate of up to 25 percent with an additional MFN tariff of 2.5 percent; and

• The 15 percent ceiling will also apply to any potential future tariffs on pharmaceuticals and semiconductors, including those based on Section 232. Until the US decides on whether to impose additional tariffs on these products pursuant to Section 232, they will remain subject only to US MFN tariffs, the Commission confirmed.

In addition, the Commission confirmed that the agreement provides for:

• Special treatment for strategic products: As of August 1, 2025, US tariffs on EU aircraft and aircraft parts, certain chemicals, certain drug generics, or natural resources will go back to pre-January levels. This will provide immediate tariff relief for key EU industries, while the EU and US agreed to keep working to add more products to this list, the Commission said;

• The two sides have agreed to join forces to protect the steel, aluminum, and copper sectors from unfair and distortive competition. Together, the EU and the US will establish tariff rate quotas for EU exports at historic levels, cutting the current 50 percent tariffs, while jointly ensuring fair global competition, the Commission said;

• Liberalizing certain trade that is of mutual interest from the US into the EU. EU importers and consumers will save around EUR5bn in duties each year, while core EU industrial and agricultural sensitivities remain protected, the Commission said;

• Elimination of already low duties on industrial goods. EU MFN tariffs on industrial goods are generally low; the EU will now eliminate these remaining low-level duties on industrial goods from the US;

• Better access to the EU market for limited quantities of US fishery products. This additional market opening on US products including Alaska pollock, Pacific salmon, and shrimp – all subject to tariff rate quotas (TRQs) - which the Commission said will benefit the EU processing industry;

• Better market access for certain non-sensitive US agriculture exports worth EUR7.5bn. Products such as soya bean oil, planting seeds, grains or nuts, as well as processed food stuff such as tomato ketchup, cocoa and biscuits, will have improved access to the EU market - all subject to TRQs.

The deal also includes commitments from the EU to work with the US on reducing non-tariff barriers. Further, the EU will procure US liquified natural gas, oil, and nuclear energy products from US producers worth about USD750bn over the next three years, and has proposed to purchase EUR40bn of AI chips.

The Commission added that EU companies have expressed interest in investing at least USD600bn in various sectors in the US by 2029.