EU and US Advance Strategic Trade Pacts to Counter Tariffs and Secure Supply Chains

The United States and the European Union are aggressively pursuing new, strategic trade agreements designed to counter the impact of tariffs and secure critical supply chains, according to several reports. The moves signal a coordinated effort by Western powers to build resilient economic alliances amidst global competition.

In Brussels, the European Parliament’s trade committee is set to vote on February 24 on a trade deal with the United States, but with fresh conditions attached. Bloomberg Law News reports that lawmakers have included a sunset clause that would terminate the agreement in March 2028 unless the U.S. reduces its tariffs on products using steel and aluminum from 50% to 15% within a six-month window.

This push is part of a wider EU strategy to open new markets and diversify its export network. European officials are also calling to fast-track negotiations for a free-trade agreement with the Gulf Cooperation Council (GCC). Speaking at the World Governments Summit, Latvia’s Prime Minister Evika Silina called it a ‘good, historical time for Europe to strengthen new partnerships.’ According to Yahoo News Singapore, the deal could see annual trade between the two blocs surge from $197 billion to $300 billion, a move aimed at countering both U.S. tariffs and competition from China.

Meanwhile, the United States has initiated a major push to negotiate a plurilateral agreement on trade in critical minerals, urging over 50 countries to join a ‘preferential trade zone.’ As a first step, the U.S. and Mexico unveiled a ‘first-of-its-kind’ action plan on February 4, 2026, to coordinate trade policies and reduce supply chain vulnerabilities over the next 60 days, according to Sandler, Travis & Rosenberg, P.A. This plan includes identifying key minerals and potentially setting border-adjusted price floors for imports, with the U.S. intending to develop similar plans with the European Union and Japan.