BRUSSELS, May 20 (Xinhua) -- Representatives of the European Parliament and the Council of the European Union (EU) reached a compromise on Wednesday in Strasbourg, France, on legislation to implement the EU-U.S. trade agreement, following months of delay and wrangling over safeguards against possible U.S. non-compliance.

File photo: AFP

The provisional agreement came after earlier talks failed to produce an agreement, with the European Parliament pushing for stronger protection mechanisms in case Washington breaches its commitments, while EU member states were concerned that tougher provisions could further anger the United States.

U.S. President Donald Trump had threatened to sharply raise tariffs on EU exports if the bloc failed to implement the trade agreement by July 4.

According to the European Parliament, the agreement strengthens several elements of the original proposals, aiming to address uncertainty in transatlantic trade and better protect EU industry, agriculture and small and medium-sized enterprises.

Under the agreement, the main regulation covering industrial and agri-food imports will include a sunset clause and expire on Dec. 31, 2029. Before that date, the Commission will conduct a comprehensive assessment of the regulation's trade effects, and may then present a legislative proposal to extend the duration of the regulation.

On steel and aluminium derivatives, the Parliament said the United States added 407 product categories to the list of derivative steel and aluminium products subject to tariffs in August 2025, increasing trade instability. Under the agreement, the Commission will be able to suspend tariff preferences if, by Dec. 31, 2026, the United States continues to apply tariffs higher than 15 percent on EU steel and aluminium derivatives.

The agreement also strengthens the suspension clause under the trade arrangement, allowing the Commission to suspend tariff preferences granted to the United States if the United States fails to address the EU's concerns over the tariff treatment of relevant EU exports.

In addition, the two EU institutions agreed to establish a safeguard mechanism. If tariff preferences granted to the United States lead to an increase in imports that threatens to cause serious injury to the EU industry, including the agricultural sector, the Commission will be able to launch an investigation.

For the next step, the EU-U.S. trade legislation will be tabled for a vote at the European Parliament's plenary session from June 15 to 18, before being submitted to the Council for approval. Once formally approved, the new legislation will enter into force the day after its publication in the EU's Official Journal.

The EU and the United States reached a trade agreement in July 2025. Its approval in the EU has been delayed for months amid strained transatlantic relations, including tensions over Trump's demands concerning Greenland and legal uncertainty surrounding the administration's sweeping tariff policy.