EU officially approves trade deal with US — with a fast response mechanism in case of violations
The regulation eliminates tariffs on industrial goods, opens access for seafood and agricultural products, but allows the EU to suspend preferences in the event of discriminatory measures. The agreement runs until the end of 2029. Cyprus, currently holding the EU Council presidency, called it a "solid and open partnership" with safeguards for EU interests.
As reported by CCTV+, on Thursday the Council of the European Union officially adopted the regulation governing tariff related measures under the EU US trade agreement. According to the Council statement, the move aims to support stable, predictable and mutually beneficial transatlantic trade relations while maintaining safeguards to protect Europe's economic interests.
Under the new regulations, the EU will eliminate remaining customs duties on US industrial goods and provide preferential access for certain US seafood and non sensitive agricultural products through tariff quotas and tariff reductions. The EU Council is committed to a solid and open transatlantic partnership with its historical ally, but openness must go hand in hand with protecting its interests, said Michael Damianos, Minister of Energy, Commerce and Industry of Cyprus, which currently holds the rotating presidency of the EU Council. These measures "will ensure that the EU can respond quickly and proportionately in the event of non compliance or a threat to its interests," Damianos said.
The regulation allows the EU to suspend tariff preferences if the US fails to meet its obligations, undermines the objectives of the joint statement or disrupts balanced trade relations, including through discriminatory measures.
The regulation will be signed and published in the EU Official Journal and will enter into force the day after publication. The main regulation will remain in force until the end of 2029. The European Commission will present a comprehensive assessment of its impact on EU US trade flows, tariff revenues and economic consequences by 30 June 2029, along with a possible legislative proposal for extension.
The EU and the US reached a trade agreement in July 2025. Its approval in the EU was delayed for several months amid strained transatlantic relations, including tensions over US President Donald Trump's demands regarding Greenland and legal uncertainty surrounding the US administration's sweeping tariff policies.
The EU US trade agreement is one of the largest bilateral deals in the world, covering hundreds of billions of dollars in goods and services. The elimination of industrial tariffs and tariff quotas on agricultural and seafood products represent major concessions on both sides. However, the built in suspension mechanism is Brussels' insurance against potential new US tariffs or other discriminatory measures. The Greenland dispute and Trump's unpredictable trade policies caused the ratification delay. The regulation runs until 2029 with a possible extension, giving both sides time to test its effectiveness.
When the world's two largest economies sign a trade agreement, it is always a balancing act. The EU opens its market to US goods but reserves the right to slam the door if Washington starts dictating terms. Greenland, tariffs, political instability — all cast shadows over the transatlantic partnership. But Brussels makes its move: yes, we trade, but we are not defenceless. And if Trump or his successors try to use tariffs as a weapon, Europe has a response. The deal is signed, but the real test will come when the first dispute reaches the suspension mechanism. Then it will become clear whether the EU is truly ready to defend its interests when the stakes are high.
