U.S. lobster goes duty‑free, EU cuts U.S. tariffs on $160 million of goods

Summary of the European Parliament amendments to the customs‑duties regulation (2024‑2029)

• The original regulation (EU 2020/2131) removed customs duties on a limited set of goods, including live and frozen lobster from the United States, from 1 August 2020 until 31 July 2025.

• The amendments extend the duty‑free period to 31 December 2028 and make it retroactive from 1 August 2025.

• The Joint Statement on a Tariff Agreement (21 August 2020) commits the EU to eliminate tariffs on US lobster and the US to cut its tariffs by 50 % on EU goods worth about US $160 million per year. Those goods include prepared meals, crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts.

• New safeguards:

• Customs authorities must verify that duty‑free goods actually come from the US and are not re‑exported through third countries.

• The Commission can suspend or amend the regulation if the US imposes tariffs above a 15 % ceiling, changes product classifications, or if there are clear signs the US will do so in the future.

• Suspension can also be triggered by serious breaches of human rights, democracy, rule of law, or security threats to the EU or its Member States.

• Delegated powers:

• The Commission is given the power to adopt delegated acts to suspend or restore the regulation, valid from the entry‑into‑force date until 31 December 2028.

• The Commission must consult experts from each Member State, notify the Parliament and Council, and allow a two‑month objection period (extendable by two months).

• Evaluation and reporting:

• A provisional evaluation report must be published within six months of the regulation’s entry into force.

• A comprehensive report is due by 30 June 2028, covering the impact on EU producers, trade balances, sectoral dependence on US goods, and budget effects. The report may include a proposal to extend the regulation.

• The Commission must keep the Parliament and Council regularly informed of developments.

• Budgetary assessment: The regulation’s financial implications have been reviewed under Article 310(4) of the Treaty, and sufficient resources are to be allocated while respecting the EU’s multi‑annual financial framework and budget rules.

• Effective dates: The regulation now applies from 1 August 2025 until 31 December 2028.

These amendments aim to maintain trade stability with the United States, provide flexibility to respond to tariff changes or political developments, and ensure transparent monitoring of the regulation’s effects.

Broader Context

This legislation is part of a wider trade agreement between the EU and the United States. After years of trade tensions, both sides agreed to reduce tariffs (import taxes) on certain goods to make trade easier and cheaper. The EU removed duties on US lobster, and in return, the US cut its tariffs on some EU products like glassware, lighters, and prepared meals. This kind of agreement helps businesses on both sides by lowering costs and increasing sales. It also shows how trade can be used as a tool to improve political and economic relationships between major global partners.

The new rules also reflect the EU’s commitment to fair trade practices. By adding safeguards, the EU wants to make sure that the benefits of this agreement are not abused—like preventing goods from being rerouted through other countries to avoid duties. The EU also wants to protect itself if the US changes its trade policies or if there are serious concerns about human rights or security.

Impact on EU Citizens

For people living in the EU, this regulation mainly affects the price and availability of certain products. Since the EU removed duties on US lobster, restaurants and shops can import it more cheaply, which might lead to lower prices for consumers. If you enjoy seafood, especially lobster, you might see more of it on menus or in stores at better prices.

On the other hand, the EU also benefits from the US reducing its tariffs on some EU products. This can help European businesses that make things like glassware or lighters, potentially creating more jobs and supporting local industries. However, the impact on everyday life for most people will likely be small, unless you work in these specific industries or are a big fan of US lobster.

The new safeguards mean that the EU can quickly respond if the US changes its trade rules or if there are other serious issues. This helps protect EU businesses and consumers from sudden changes that could make products more expensive or harder to find.