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 amendment is part of a broader effort by the European Union and the United States to ease trade tensions and keep goods flowing smoothly between two of the world’s largest economies. The original 2020 agreement came after a period of tariff disputes, where both sides imposed extra taxes on each other’s products.

By extending duty-free access for certain goods (like lobster), the EU is maintaining a balanced deal: both sides reduce trade barriers instead of increasing them. At the same time, the EU is adding safeguards to protect itself if the US changes its policies, raises tariffs again, or if broader political or security concerns arise. This reflects a more cautious approach to trade—keeping cooperation, but with clear conditions and the ability to react quickly.

Impact on EU Citizens

For people living in the EU, the effects are indirect but practical:

• Prices and availability: Imported US products covered by the agreement (like lobster) can remain cheaper or more stable in price because no customs duties are applied.
• Jobs and businesses: EU companies that export to the US benefit from reduced US tariffs on certain goods, which can support jobs and business activity in those sectors.
• Consumer protection and fairness: The new rules ensure that only genuine US products benefit, preventing unfair competition from goods routed through other countries.
• Security and values: The EU keeps the option to suspend the deal if there are serious issues (like human rights violations or security threats), meaning trade benefits are linked to broader political standards.

Why Monitoring and Reports Matter

Regular evaluations mean the EU is checking whether the agreement is actually beneficial—looking at things like effects on EU industries, dependence on US imports, and public finances. This helps decide whether to continue, change, or stop the policy after 2028.