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EU-US Trade Deal Set to Take Effect After Final Approval from European Council

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EU-US Trade Deal Set to Take Effect After Final Approval from European Council

The trade deal between the European Union and the US is set to take effect after the European Council gave its final approval on Thursday, adopting two regulations implementing tariff commitments agreed in August 2025.

Under the main regulation, the EU will remove the remaining customs duties on US industrial goods. Certain US seafood and agricultural products will also gain preferential access to the EU market through tariff rate quotas and lower tariffs. The second regulation, meanwhile, extends the tariff-free imports of US lobster, including processed lobster.

The approved measures also contain provisions that would suspend the deal if the US "does not respect its commitments, undermines the objectives of the Joint Statement, or otherwise disrupts balanced trade relations, including through discriminatory measures."

"The adoption completes the legislative process and confirms the EU's commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guardrails to protect European economic interests," the council said in a statement.

Under the deal signed in 2025, the EU and the US agreed to 15% tariffs on "most" EU exports, including automobiles, semiconductors, and pharmaceuticals.

The council's adoption of the regulations comes after the European Parliament on June 16 greenlighted the proposed legislation, including a "sunset clause," which stipulates that the main regulation will cease to apply on Dec. 31, 2029, unless it is renewed.

The rule on lobster imports will be retroactively implemented from Aug. 1, 2025, and conclude on July 31, 2030.

The EU's final approval also averts the threats of increased tariffs. US President Donald Trump previously gave the EU a July 4 deadline to ratify the deal, saying he will impose "much higher" tariff levels on EU goods otherwise.

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