The Council of the European Union formally adopted two regulations on 25 June that implement the tariff commitments set out in the EU–US joint statement of 21 August 2025, completing the legislative process. The regulations will be signed, published in the EU’s Official Journal, and enter into force the following day. They eliminate remaining EU customs duties on US industrial goods, introduce preferential access for certain US seafood and non-sensitive agricultural products through tariff-rate quotas and reduced tariffs, and extend the suspension of duties on lobster imports. The main regulation expires at the end of 2029 unless both sides agree to renew it.

Struck in July 2025 between President Trump and European Commission President von der Leyen, the deal sets levies of 15% on most EU exports to the US and zero tariffs on US industrial goods entering the bloc. The EU side’s approval was delayed by political tensions, including Trump’s threats to Greenland and a US Supreme Court ruling that struck down many of his tariffs. The final texts incorporate safeguards demanded by the European Parliament: a rescission clause that automatically terminates the agreement on 31 December 2029 absent a joint extension, a suspension mechanism allowing the Commission to freeze tariff preferences immediately if the US maintains or raises duties on European steel and aluminium above 15%, and an agricultural and industrial safeguard that triggers automatic tariffs if US imports cause serious injury to EU producers.

Viewed from Brussels, the pact is a stabilisation measure with an indispensable but unpredictable ally. European officials describe a triple strategy: support multilateralism despite the paralysis of the World Trade Organization’s Appellate Body, diversify trade alliances through agreements such as CETA with Canada, and strengthen the internal market. The deal’s built-in review—the Commission must deliver a comprehensive assessment by 30 June 2029—reflects a recognition that the transatlantic relationship now operates under permanent conditionality.

In North America, the focus shifts to the mandatory review of CUSMA, which begins next week. The three countries must decide whether to extend the agreement for 16 years or move to annual reviews until 2036. President Trump has stated the US would be better off without the pact and has threatened termination. Canadian provincial officials warn that a US withdrawal would devastate cross-border industry, while a US Tax Foundation report estimates that removing tariff exemptions could cost American households roughly $300 each in 2027. Mexican commentary argues that the agreement should be renegotiated to eliminate remaining protectionist measures and advance toward genuine free trade, though the political appetite for such a course remains uncertain.

The next factual milestones are the publication and immediate entry into force of the EU regulations, and the CUSMA review meeting, which will determine whether North America’s trade architecture moves toward extension or a more precarious annual cycle.