EU's Strategic Safeguards in New US Tariff Deal

The European Union is implementing safeguards and a review clause in a new tariff deal with the U.S. EU governments are removing tariffs on U.S. industrial goods while monitoring potential damage to the EU industry. The final deal includes protections against an import surge and recommendations for tariff suspensions.

The European Union (EU) governments are seeking to introduce crucial safeguards and a review clause in their newly established tariff deal with the United States to prevent potential harm to EU industries from a surge in U.S. imports.

As of late July, the deal allows the U.S. to impose a 15% tariff on EU goods whereas the EU will eliminate several tariffs on imports from the U.S., pending approval from both the European Parliament and EU member states. The bloc's 27 nations have already aligned on a unified stance regarding the legislation.

Besides removing tariffs from U.S. industrial goods, the EU intends to set tariff-free quotas for specific seafood and agricultural goods. However, they retain the right to revoke these changes should the imports risk damaging the EU market. Further, a mechanism will be in place to oversee the impact of these changes, expected to be reported by 2028 following the U.S. presidential elections, while negotiations with the European Parliament are underway to finalize the deal.

(With inputs from agencies.)