The EU Parliament and Council have reached provisional agreement on two Regulations eliminating tariffs on all US industrial goods and providing preferential market access for certain US agricultural and seafood products.
The two pieces of legislation implement EU tariff commitments under an EU-US Joint Statement agreed on August 2025.
“The EU has shown that we are a reliable trading partner, while standing firm in defending the interests of European stakeholders”, said the EU Trade Commissioner Maros Sefcovic: “Once formally approved by the European Parliament and the Council, this will reinforce stability in transatlantic trade and open the door even wider to constructive cooperation.”
The Joint Statement is expected to serve as a platform to continue engaging with the US to lower tariffs and cooperate closely on shared challenges.
The first (main) regulation eliminates remaining customs duties on US industrial goods and grants preferential market access including via tariff rate quotas (TRQs) and reduced tariffs for certain US seafood and non-sensitive agricultural products. The second regulation focuses on extending the duty suspension for imports of lobster, including processed lobster.
The co-legislators have agreed to strengthen the main regulation by setting up a robust safeguard mechanism, reinforcing the suspension clause provisions and introducing a sunset clause, among others. Some elements were mirrored in the second regulation concerning the imports of lobster.
The agreement includes a dedicated safeguard mechanism, which gives the EU the means to address possible significant increases in imports from the US that cause or threaten to cause serious injury to domestic producers.
The agreement reinforces the conditions under which the Commission is empowered to suspend in whole or in part the application of the regulation, via an implementing act. This may happen where the United States fails to meet the commitments of the Joint Statement, where the United States otherwise undermines the objectives pursued by the Joint Statement or disrupts the trade and investment relations with the EU, including by discriminating against or targeting EU economic operators. The suspension mechanism may also be triggered where there are sufficient indications that such actions may occur in the future.
The Commission is also empowered to suspend concessions concerning steel and aluminium products to the US 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.
The co-legislators agreed to introduce a sunset clause, under which the regulation will cease to apply at the end of 2029 unless further action is taken.
The agreement provides for regular monitoring of the economic effects of the trade liberalisation measures on the EU’s economy. Six months after the regulation enters into force, and every three months thereafter, the Commission will have to inform the co-legislators of changes in trade volumes and values of US exports to the EU of the goods covered by the regulation(s).
Six months before the end date of application of the regulation, the Commission will present a comprehensive assessment examining, among other things, the impact of the regulation on the EU-US trade flows, on trade patterns, on tariff revenue, and, more specifically, the impact on SMEs. Where appropriate, this assessment will be accompanied by a legislative proposal to extend the application of the regulation.
The agreed Regulation texts will now enter into the formal adoption process by the European Parliament and the Council over the coming weeks, to ensure their rapid entry into force.
Once approved, the liberalised market access would be in place until the end of 2029, with the possibility of being extended further.
