EU-US deal on tariffs spares European consumers from higher prices

The European Parliament has approved the EU’s deal on tariffs with the United States that will apply until 31 December 2029. While not a perfect deal, it helps prevent a damaging tariff war that would have driven up prices and reduced choice for consumers on both sides of the Atlantic.

The deal grants duty-free access to the EU market for some US industrial goods and expands access for US food products, provided they comply with EU safety standards. In return, most EU exports to the US will face a reduced tariff rate of 15%, instead of the 30% initially threatened by the US administration in early 2025.

Importantly, EU institutions have strengthened the deal by introducing a suspension clause. This allows the European Commission to suspend preferential access to the EU market if the US breaches the agreement, including by imposing new tariffs or attempting to pressure the EU into weakening its consumer protection rules. This safeguard comes amid continued criticism from the US administration that it may use tariff threats to influence EU policies, including digital regulation and pharmaceutical pricing.

Agustín Reyna, Director General of BEUC, commented: 
“We are pleased this deal helps prevent a tariff war and should give consumers a bit more price stability at a time of high living costs.”

“It is positive that the EU has a safeguard to help protect consumers if trade pressure is used against the rules that protect them. The European Commission must stand its ground and ensure that consumer protection is not used as a bargaining chip.”