EU: Parliament approves EU-US tariff legislation

The main proposal for a regulation eliminates tariffs on all US industrial goods and provides preferential market access for a wide range of US seafood and agricultural goods. The second proposal for a regulation concerns the prolongation of tariff-free imports of lobster, and now also includes processed lobster. Both proposals were previously agreed by Parliament and Council negotiators, who introduced several elements strengthening the Commission’s original proposal.

Sunset clause

The main regulation on industrial and agri-food imports will expire on 31 December 2029. By 30 June 2029, the Commission will make a comprehensive assessment of its trade effects on EU industry, agriculture and small and medium-sized enterprises, and of changes in trade patterns with third countries, accompanied by a legislative proposal to prolong the regulation’s duration, if appropriate.

Strengthened suspension clause

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

Safeguard mechanism

Parliament and Council also agreed to establish a safeguard mechanism should tariff preferences granted to the US lead to increases in imports that threaten to cause serious injury to EU industry, including the agricultural sector. The Commission will be able to start an investigation on its own initiative, or on the basis of information provided by one or more member states or by the European Parliament. The Commission will also report to the Parliament and the Council on a quarterly basis on changes in trade volumes and values of US exports of the goods covered by this legislation.

Clear conditions were also set on tariff reductions on steel and aluminium derivatives

Next steps

Once approved by the Parliament, it will be the Council’s turn to formally approve the agreed texts. The new legislation will then enter into force on the day after its publication in the EU’s Official Journal.