Understanding the EU-US trade deal

Last updated: 1 July 2026

Under the terms of the EU – US deal, the EU will eliminate all its tariffs on US industrial exports and open tariff rate quotas on a range of agriculture products.

This EU – US trade deal was approved by the European Parliament on 16 June 2026.

Steel tariff conditions

Among the most important amendment is a condition for the US to cap its tariffs on steel and aluminium at 15%.  

The US currently applies 50% duties on such products on the basis of national security legislation – its Section 232 article.

Under the terms agreed (19 May 2026), the EU Commission is empowered to suspend concessions concerning steel and aluminium products if by 31 December 2026 the US continues to apply a tariff rate higher than 15% on steel and aluminium derivative products imported from the EU.

Ability to suspend tariff preferences

The EU Commission can suspend tariff preferences if the United States fails to address the EU’s concerns regarding the tariff treatment of EU exports which until 24 February 2026 benefitted from the 15% all-inclusive tariff ceiling.

Why this matters acutely for Northern Ireland

If EU reciprocal or safeguarding tariffs are applied to US-origin goods:

1. They will apply to both direct and indirect imports of US products into Northern Ireland.
2. Such goods will be automatically deemed ‘At Risk’ under the Windsor Framework.
3. They cannot be cleared under the UK Internal Market Scheme, irrespective of their final sale or use.
4. EU duty would be payable (or waived using customs waiver allowance) at the point of import, with only a potential post-import reclaim via the Duty Reimbursement Scheme where strict evidential requirements are met.

This automatic ‘At Risk’ treatment is the key Northern Ireland-specific exposure.