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

The EU and the US have had a long-running trade dispute that dates back to 2018, when the US imposed tariffs on European steel and aluminium. The EU retaliated with tariffs on a range of American products, including lobster. This regulation is part of a peace deal between the two sides: the EU drops tariffs on US lobster, and the US reduces tariffs on certain European exports in return.

The original agreement was signed in 2020 under the Trump administration and the Biden administration kept it in place. Extending it now signals that both sides want to keep trade relations stable despite ongoing tensions over broader tariff policy.

Impact on EU Citizens

For most EU citizens, the direct impact is small but real:

• Lobster prices: Removing import duties makes US lobster cheaper to bring into Europe. This can slightly lower prices in restaurants and shops, though how much reaches the consumer depends on the retailer.
• European exporters: EU companies selling things like crystal glassware, prepared meals, and cigarette lighters to the US benefit from lower American tariffs on those goods — helping protect jobs in those industries.
• Protection built in: If the US raises tariffs sharply or violates democratic standards, the EU can quickly suspend the deal. This means the agreement cannot easily be used against EU interests without consequences.

Key Things to Watch

The Commission must publish a full report by June 2028 on how the deal has affected EU producers and trade. If the current tariff disputes between the US and EU escalate before then, the safeguard clauses could be triggered and the entire agreement suspended before it expires.