EU and Parliament reach provisional deal on tariff parts of EU-US Joint Statement

The Council presidency and the European Parliament have reached a provisional agreement on two regulations designed to implement the tariff-related elements of the EU-US Joint Statement agreed on 21 August 2025. The deal was announced by the Council of the EU and the European Council and concerns the legal steps needed to carry out the tariff reductions set out in that statement.

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The agreement is framed as a move to deliver the commitments undertaken by the European Union in the Joint Statement and to support a stable and predictable transatlantic trade relationship with the United States. The source says the EU and the US share the world's largest and most integrated economic relationship, and that the Joint Statement is expected to serve as a platform for continued engagement to lower tariffs and cooperate on shared challenges.

The first regulation in the package eliminates remaining customs duties on US industrial goods. It also grants preferential market access for certain US seafood and non-sensitive agricultural products through tariff rate quotas and reduced tariffs.

The second regulation concerns lobster imports and extends the duty suspension for lobster, including processed lobster. The co-legislators also agreed to strengthen the main regulation with a robust safeguard mechanism, reinforced suspension clause provisions, and a sunset clause.

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The safeguard mechanism is intended to allow the EU to respond to possible significant increases in imports from the US that cause or threaten serious injury to domestic producers. Under the safeguard mechanism, the Commission may open an examination after a duly substantiated request from three or more member states, from EU industry, or from trade unions, or on its own initiative.

If there is sufficient evidence, the Commission may decide to suspend the regulation in whole or in part. The agreement also reinforces the conditions under which the Commission may suspend the regulation via an implementing act.

The source says suspension may be used if the United States fails to meet the commitments of the Joint Statement, undermines the objectives of the Joint Statement, or disrupts 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 agreement further empowers the Commission to suspend concessions on 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 also introduced a sunset clause under which the regulation will cease to apply at the end of 2029 unless further action is taken.

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The package includes regular monitoring of the economic effects of the trade liberalisation measures on the EU economy. Six months after the regulation enters into force, and every three months thereafter, the Commission must inform the co-legislators of changes in trade volumes and values of US exports to the EU for the goods covered by the regulations.

Six months before the end date of application, the Commission is to present a comprehensive assessment of the impact on EU-US trade flows, trade patterns, tariff revenue, and SMEs, with a legislative proposal to extend the regulation where appropriate. Once the texts are finalised at technical level, the provisional agreement must be endorsed and formally adopted by both institutions before publication in the Official Journal.

The regulations will enter into force the day after publication. The lobster regulation will apply retroactively from 1 August 2025.

The source also states that EU and US trade in goods and services amounted to around EUR 1.7 trillion in 2024, and that in 2023 firms from both sides held over EUR 4.7 trillion in investments in each other's markets.

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