General
What has the Commission proposed in terms market access liberalisation for US products?
On 21 August 2025, the European Union (EU) and the United States (US) issued a Joint Statement setting out actions to be taken by both sides as part of the political agreement reached on 27 July 2025 between President von der Leyen and President Trump. The US took a first step in the implementation of this agreement by applying to EU exports subject to reciprocal tariffs an all-inclusive tariff ceiling of 15% (inclusive of the MFN tariffs).
The two proposals of the Commission constitute the first steps in the implementation by the EU of the terms of political deal concerning market access for US products, as set forth in Section 1 of the EU-US Joint Statement.
The proposals foresee:
- elimination of tariffs on all US industrial goods entering the EU.
- opening of Tariff Rate Quotas (TRQs) for certain US seafood and non-sensitive agricultural products.
- prolongation of tariff-free treatment for lobster, now including also processed lobster.
What is the impact of the EUs market access offer for US industrial, seafood, and agricultural goods?
Already today, the EU applies zero or very low tariffs on 67% of US industrial goods, by bringing all tariffs on US industrial products down to zero the EU will ensure that many US products will be more easily available for EU industry and end-users, yet without affecting any EU sensitivities.
This will also reduce the burden on imports from the US by about €5 billion, which would have been the estimated customs duties otherwise paid by importers of industrial goods in the EU. Given that US exports to the EU amounted to around €335 billion in 2024, the limited scope of the concession should be seen in proper perspective.
For seafood and non-sensitive agricultural products, the opening of TRQs concerns products where there is clear space for the EU to open its market in a controlled manner due to the strong internal EU demand and size of the market.
On the EU market access offer
What are the industrial products for which the EU is eliminating tariffs?
The EU proposal eliminates tariffs on all US industrial products. These are listed in Annex I and Annex II of the proposal on tariff adjustments. For example, a 0% tariff treatment will apply to machinery, cars and car parts, wood and pulp of wood products, paper and paperboard, ceramics, or leather.
What are the agricultural products for which you have liberalised market access?
The EU proposal opens market access for certain seafood and certain non-sensitive agricultural products. In general, these tariff reductions will be implemented via product-specific Tariff Rate Quotas (TRQs). The products and their corresponding quota duties and volumes are outlined in Annex III of the proposed regulation.
These include seafood, nuts, dairy products, fresh and processed fruits and vegetables, processed foods, grains and planting seeds, soybean oilseeds, pork and bison meat. Many of these are goods for which the US is already a major source for the EU processing industry (e.g. nuts, Alaska pollock, sorghum grain). However, the EU proposal does not include sensitive agricultural products such as beef, poultry, rice, or ethanol.
What is the proposal for tariff-free treatment on lobster?
The Commissions proposal prolongs the tariff-free treatment of lobster on an MFN basis which entered into force in December 2020 for a five-year period, until 31 July 2025, as a result of a prior agreement with the United States in 2020. The proposal also extends this tariff-free treatment to processed (i.e. prepared) lobster. For the EU, this expected to continue to support the food-processing industry and the hospitality sector.
The US agreed to reduce its tariffs on EU cars and car parts once the Commission introduces a proposal on market access. How will that work?
The Commission proposals constitute the necessary legislative proposals to enact the EUs tariff reductions set forth in Section 1 of the EU-US Joint Statement.
In line with Section 3 of the EU-US Joint Statement, we expect the US to implement the agreed 15% US tariff ceiling to EU cars and car parts.
These tariff reductions from 27.5% to 15% are expected to be effective from the first day of the same month in which the EUs legislative proposals are introduced, i.e. 1 August 2025.
On next steps
What is the process of this legislative procedure?
The European Parliament and Council will have to approve the two proposals under the ordinary legislative procedure before the EUs tariff reductions can enter into force.
Do we have to wait for the proposal to be approved by the co-legislators before the US will apply the reduced tariff rated for cars?
No. As agreed in the EU-US Joint Statement, once the Commission adopts the proposal, the US is expected to lower car tariffs from 27.5% to 15% in that same month, retroactively.
The Commission has ensured to make the proposals in August, so that this important EU industry can benefit from US tariff relief as early as possible.
Hence, the US tariff reduction is not linked to the actual finalisation and implementation of the EU legislative proposal.
What else can be expected in terms of tariff reduction from the EU and US sides?
The Joint Statement, and the implementation steps from the US and the EU that followed shortly after, are intended as first steps in a process that can be further expanded over time to cover additional areas and improve market access.
In addition, as of 1 September certain product categories are expected to receive zero or near to zero tariffs from the US for which only the MFN tariff will apply (unavailable natural resources, including cork, all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors). The specific product scope of the carve outs will be defined by the US, building on our discussions. We have agreed with the US to work on expanding this list further in the future.
As part of a separate process, the EU and the US will engage and cooperate further in other areas set out in the EU-US Joint Statement, including, but not limited to, non-tariff barriers and economic security.
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