EU, US Trade Deal Gains Guardrails

The European Parliament and the Council have reached a provisional agreement on legislation implementing the European Union’s tariff commitments under the August 2025 EU-US Joint Statement. The agreement aims to provide greater predictability in transatlantic trade while adding safeguards for European industry and agriculture.

Under the deal, tariff preferences covering US industrial and agri-food imports will expire on December 31, 2029, unless extended. Before that deadline, the European Commission must assess the measures’ effects on EU industries, farmers, small and medium-sized businesses and trade patterns with other countries.

The agreement also allows the Commission to suspend tariff preferences if the United States continues to apply tariffs above 15% on EU steel and aluminium derivatives after December 31, 2026. A separate suspension provision covers unresolved concerns over US tariff treatment of certain EU exports. The legislation includes a safeguard mechanism allowing investigations if increased imports threaten serious injury to European producers, including the agricultural sector.

Parliament and Council also agreed to extend tariff-free imports of lobster until July 31, 2030, retroactively from August 1, 2025. The European Parliament’s International Trade Committee is expected to vote on the agreement in early June, followed by a plenary vote scheduled for June 15-18. The Council must then formally approve the texts before they enter into force after publication in the EU’s Official Journal.