Economy June 25, 2026 04:29 AM

EU Council approves law removing tariffs on many U.S. goods to implement transatlantic deal

Measure clears final governmental hurdle after Parliament vote, setting expiry and safeguards through 2029

By Leila Farooq
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EU governments on Thursday adopted legislation to eliminate import duties on a broad range of U.S. products, completing the European Union's commitment under a trade framework agreed with U.S. President Donald Trump. The move follows a decisive parliamentary approval and aims to meet a July 4 deadline tied to U.S. tariff threats; the rules become effective once published in the EU official journal and include an expiry at the end of 2029 plus clauses allowing suspension if the United States violates the deal.

EU Council approves law removing tariffs on many U.S. goods to implement transatlantic deal
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Key Points

  • EU Council adoption finalises legislative implementation after European Parliament approval (440 for, 151 against, 50 abstentions) - impacts trade and industrial goods sectors.
  • Agreement removes duties on U.S. industrial goods, offers preferential access for U.S. farm produce, and extends duty-free lobster imports - affects agriculture, seafood, and manufacturing supply chains.
  • Legislation becomes effective after publication in the EU official journal, includes expiry at end of 2029 and safeguards allowing suspension if the United States breaches terms - relevant for policymakers and import-dependent industries.

LUXEMBOURG, June 25 - European Union governments moved on Thursday to put into law the measures that remove import duties on a range of U.S. goods, fulfilling the EU's obligations under the trade arrangement reached with U.S. President Donald Trump last year and aiming to avert renewed friction across the Atlantic.

The step by the Council - the body representing EU governments - follows approval by the European Parliament last week, where the text was supported by 440 votes in favour, opposed by 151 and met with 50 abstentions. That parliamentary vote came almost 11 months after the framework agreement was concluded.

Under the terms of the agreement, the European Union has committed to lift import duties on U.S. industrial products and to provide preferential access for certain U.S. farm produce. The package also carries forward duty-free entry for U.S. lobster, a smaller arrangement that was agreed with President Trump during his first term.

Officials noted that the Council's adoption on Thursday positions the European Union to meet a deadline tied to a U.S. ultimatum. President Trump had warned of "much higher" tariffs unless the EU took action by July 4. Once the legislation is published in the EU official journal it will take effect.

The legal text sets a sunset date at the end of 2029. It contains multiple safeguards that would permit the European Union to suspend the concessions if it determines the United States has breached the terms of the trade arrangement.


Key details:

  • The European Parliament approved the legislation by 440 votes to 151, with 50 abstentions.
  • The Council adopted the legislation on Thursday, leaving the EU on track to meet the July 4 timeline referenced by the U.S. administration.
  • The measures remove duties on U.S. industrial goods, grant preferential access for U.S. farm produce, extend duty-free lobster imports, and expire at the end of 2029 with safeguards for suspension.

This adoption completes the EU-side implementation of the bilateral framework without introducing further modifications to the commitments described in the agreement. The legislative text will become operative following publication in the EU official journal; until then the provisions are not yet in force.

The law's sunset clause and the built-in suspension mechanisms mean the EU retains formal tools to respond should the United States fail to respect the deal's terms. Beyond those explicit provisions, the legislation's adoption is a procedural milestone in the administration of the transatlantic trade arrangement.

Risks

  • Risk of suspension - the law includes safeguards enabling the EU to suspend concessions if the United States breaches the agreement; this could create uncertainty for exporters and importers in impacted sectors such as manufacturing and agriculture.
  • Timing-related risk - the measures take effect only after publication in the EU official journal; any delay in that publication could affect the anticipated schedule for tariff removal and market adjustments.
  • Expiry risk - the legislation expires at the end of 2029, creating a finite window of preferential treatment that may affect long-term planning for businesses in affected industries.

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