- The European Parliament approved a trade deal removing tariffs on US industrial goods and selected food exports.
- The agreement runs until 2029 and safeguards against higher US tariffs.
- MEPs also extended tariff-free access for US lobster imports.
On Tuesday, 16 June, the European Parliament approved a belated trade agreement with the US, cutting all tariffs on US industrial exports and certain agricultural goods.
The main proposal of the deal, much of which was settled last summer, was to eliminate duties on US industrial products and give preferential market access for a range of agricultural goods and seafood. This was approved by European Union (EU) lawmakers with 440 votes to 151, and 50 abstentions.
Set to be in place until the end of 2029, the new regulation safeguards the EU against steep tariffs such as those imposed back in 2025, when US President Donald Trump enacted the International Emergency Economic Powers Act (IEEPA). At the time, Trump and Ursula von der Leyen, President of the European Commission, reached a consensus that the US would impose a single, ceiling tariff rate of 15% on most EU exports.
But after the IEEPA tariffs were ruled unlawful, Trump turned to Section 301 of the 1974 Trade Act, which allows the US to impose trade sanctions on nations engaging in discriminatory trade and supply chain practices. This led to the US imposing additional levies on certain EU exports – on top of the existing 15% – attributed to the EU’s ‘inadequate’ forced labour laws.
Additionally, in August 2025, the US added 407 product categories to the list of steel and aluminium products facing tariffs, which the European Parliament considers to increase trade instability.
According to a recent statement by the European Commission, this was voiced when deliberating the new regulation. As a result, if the US continues to subject European goods – especially steel and aluminium derivatives – to tariffs exceeding the 15% ceiling, the Commission is able to suspend its preferential tariffs on American goods by the end of the year.
The EU is not only the US’ largest trading partner, but also a key market for a niche American export: lobsters. In 2017, the US exported roughly $111 million worth of lobster into the EU – a figure which fell gravely by 2020. The bloc then agreed to cut tariffs on the shelled fish (just in time for Trump’s bid for re-election), and lobster exports grew to around $80.27 million by 2024.
The deal comes at a crucial point in the lead-up to the US midterm elections, due in November this year. The lobster industry, which will benefit from the seafood provisions in the deal, is particularly important in Maine. The state’s voting outcome historically swings both Democrat and Republican, meaning, as a swing state, Maine carries an outsized impact due to the US’ electoral college system.
The second proposal for the new regulation concerned the lobsters, continuing their tariff-free import and extending the policy to include processed lobster as well. This was adopted by a 444 to 152 vote, with 54 abstentions.
