On 28 August 2025, the European Commission published two legislative proposals that follow up on the Joint Statement of the European Union (EU) and the United States (US) on the Framework Agreement of 21 August 2025 and the previous EU-US Trade Agreement of 27 July 2025 respectively. What changes to prepare for? We summarize everything important in the article.
For more information, please also read our previous article New EU–US Trade Framework: Opportunities and Challenges for European Businesses.
Under the agreement, the US committed to reducing the applicable tariff rates for goods originating in the EU to a maximum tariff ceiling of 15% and to apply only the most-favoured-nation tariff rate for certain products. Goods for which the most-favoured-nation clause should apply include, for example:
In return, the European Commission expressed its intention to eliminate tariffs on all industrial products originating in the US and to grant preferential market access for certain fishery and agricultural products, including nuts, dairy products, fresh and processed fruit and vegetables, food products, seeds, soybean oil and pork or bison. The legislative proposal contains three annexes incorporating these intentions:
1. Annex I – contains products for which a zero tariff rate will be applied in the EU.
2. Annex II – applies to agricultural products for which the ad valorem duty (percentage rate) is suspended at 0%, but the specific rate (e.g. duty per 100 kg of imported product) is maintained.
3. Annex III – includes products for which the tariff-rate quota system applies. This Annex primarily concerns products intended for human consumption. For selected products, a 0% duty rate will apply up to the quota (quantity) set.
The proposal confirms that the origin of goods will be determined according to the non-preferential rules of origin set out in the Union Customs Code until the preferential rules of origin are adopted.
The second legislative proposal concerns imports of specific lobster species, which includes retroactive effect to allow importers to claim a refund of customs duties paid on lobster imports made from 1 August 2025 or later.
Both of the above-mentioned proposals of the European Commission launch the process of introducing tariff reductions on imports of goods originating in the USA. The standard legislative procedure for approving proposals in the European Parliament and the Council will now take place. Once approved, the tariff reductions for goods originating in the US will come into effect.
In the Joint Statement, the EU and the US committed to work towards improving market access and will separately address other areas identified in the Joint Statement, including non-tariff barriers and economic security.
The contents of this summary are as of September 2, 2025, and further updates will follow as new information becomes available.
How can we help you?
Deloitte specialists are part of a global network of experts who provide specialized assistance in the field of customs issues and international trade. If you would like to learn more about the above developments or discuss their impact on your business and business cases, please do not hesitate to contact us.
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