Global Daily Tax News, EU Agrees To Proceed With US Trade Deal, (May 21, 2026)

The European Union has reached a consensus on eliminating tariffs on all US industrial goods and providing preferential market access for certain US agricultural and seafood products, as part of the EU-US free trade deal.

In July 2025, the EU and the US reached a political agreement on tariff and trade issues (the so-called Turnberry Deal). The terms were outlined in detail in an August 2025 joint statement announcing an EU-US Framework Agreement. The Commission then published two legislative proposals aimed at implementing certain tariff aspects of the EU-US Framework Agreement.

Under the terms of that deal, the US committed to establishing a single, all-inclusive US tariff ceiling of 15 percent for EU goods. At the time this was agreed, this was a relatively favorable rate for the EU compared with higher reciprocal tariff rates applied by the US on its international trading partners.

Following the US Supreme Court's ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful, the EU had decided to shelve implementation of the Turnberry Deal in February 2026.

It was unclear whether the terms of the arrangement would be changed or whether the EU would proceed with implementing the deal at all, until an announcement from the European Commission on May 20, 2026, that the European Parliament and the EU Council had agreed the two regulations to give effect to the EU's tariff commitments.

Under the deal, the EU will eliminate already low duties on industrial goods from the US. The Commission said: "Today's agreement ensures that the key objectives of the EU-US Joint Statement – maintaining stable, fair, predictable, and mutually beneficial transatlantic trade and investment – are achieved, and opens the path to boosting transatlantic trade by exploring further areas for reducing tariffs for EU exports."

Among other things, the Commission noted that the deal confirms that European cars and car parts will also be liable to a maximum 15 percent rate. It said the regulations give the EU the necessary tools to enforce commitments made in the EU-US Joint Statement. In specifically defined circumstances, the Regulations would allow the EU to respond by suspending in full or in part its tariff concessions.

The agreed final texts will now be put forward for formal adoption by the European Parliament and the Council over the coming weeks, to ensure their rapid entry into force.

Once approved, the liberalized market access would be in place until the end of 2029, with the possibility of being extended further.