IMMC.COM%282025%29471%20final.ENG.xhtml.1_EN_ACT_part1

EUROPEAN COMMISSION

Brussels, 28.8.2025

COM(2025) 471 final

2025/0261(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the adjustment of customs duties on the import of certain goods originating in the United States of America and opening of tariff quotas for imports of certain goods originating in the United States of America

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

On 27 July 2025 the European Union and the United States reached a political agreement as regards their trade relationship and on 21 August 2025 they issued a Joint Statement which announced the European Union-United States Framework on an Agreement on Reciprocal, Fair, and Balanced Trade (“Joint Statement”). As a result, the United States committed to modify certain tariffs applicable to Union imports in line with that political agreement, reducing the applicable rate to an all-inclusive tariff ceiling of 15 %. The United States Executive Order (14326) of 31 July 2025 implements this commitment from 7 August 2025. From 1 September 2025, the United States will also apply only the Most Favoured Nation (MFN) tariff to certain Union products such as unavailable natural resources (including cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors. The Union and the United States will also consider other sectors and products that are important for their economies and value chains for inclusion in the list of products for which only the MFN tariffs would apply. The Union and the United States intend this Joint Statement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship.

As part of the political agreement, and as laid down in the Joint Statement of 21 August 2025, the Union expressed the intention to eliminate tariffs on all industrial goods originating in the United States and to provide preferential market access for certain seafood and agricultural goods.

To advance the implementation of the Union’s political commitments, the objective of this proposal is to provide for the non-application of customs duties on all industrial goods originating in the United States and provide the preferential market access treatment for certain seafood and agricultural goods originating in the United States.

•Consistency with existing policy provisions in the policy area

The proposed Regulation would create additional opportunities for Union and United States operators by the non-application or reduction of customs duties and would avoid deterioration of trade relations with the United States. It is consistent with the Treaty on European Union (TEU), which stipulates that the Union should encourage the integration of all countries into the world economy, including through the progressive abolition of restrictions on international trade 1 .

•Consistency with other Union policies

The proposal is consistent with other Union policies.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 207 of the Treaty on the Functioning of the European Union (TFEU).

•Subsidiarity (for non-exclusive competence)

According to Article 5(3) of the TEU, the subsidiarity principle does not apply in areas of exclusive Union competence. The customs union and the common commercial policy is listed among the areas of exclusive competence of the Union in Article 3 of the TFEU. This policy includes the negotiation of trade agreements and the adoption of trade policy measures including tariff reductions pursuant to, inter alia, Article 207 TFEU.

•Proportionality

The Commission proposal is in line with the principle of proportionality, and necessary in light of the objective to avoid deterioration of trade relations with the United States.

•Choice of the instrument

Regulation of the European Parliament and of the Council.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

Not applicable

•Stakeholder consultations

Not applicable

•Collection and use of expertise

Not applicable

•Impact assessment

In light of the political commitment between Commission President von der Leyen and President Trump of 27 July 2025 and the Joint Statement of 21 August 2025, as well as the need to move ahead quickly with the implementation of the political agreement, the formal impact assessment process has been waived.

The prompt implementation of Union commitments on market access, as a result of the political agreement and Joint Statement, will be beneficial to Union importers and companies as well as consumers. The Union’s swift implementation as part of the political agreement with the United States is imperative to stabilise the trade relationship and solidify the commitments made by both the Union and the United States, ensuring that the Union operators will retain a competitive position on the United States market.

The Union commitments pursuant to the Joint Statement include granting a preferential tariff reduction for certain products originating in the United States. This consists of a non-application of customs duties on imports of certain goods originating in the United States. Further to the already duty-free treatment of certain industrial goods, covering 66% of total industrial goods originating in the United States in 2024, pursuant to this Regulation customs duties will be suspended for the remaining industrial goods, representing 34% of industrial goods imports in 2024. For seafood and agricultural goods, preferential market access is proposed to be provided to non-sensitive agricultural products only, where there is a Union interest to facilitate imports. This is done through a partial liberalisation for certain agricultural goods and through tariff quotas.

With regard to the Regulation’s digital implications, the proposal concerns the adjustment of customs duties on the import of certain goods originating in the United States and opening tariff quotas of the Union for certain goods originating in the United States. While the proposal relies on digital means for the implementation of the introduced procedures, it does not introduce any specific binding requirements mandating their use. The proposed procedures entirely rely on the technical and digital systems already in place and the proposal does not imply any modification with respect to these systems. On this basis, this policy initiative is assessed as having no requirement of digital relevance. The ‘digital by default’ principle is taken into account to the extent possible, namely by the recognition of existing digital means, as valid for the purposes of this proposal.’

•Regulatory fitness and simplification

Not applicable

•Fundamental rights

The proposed regulation is consistent with the Treaties and the Charter of Fundamental Rights of the European Union because the proposed regulation would not limit the exercise of any fundamental right, such as the freedom of professional occupation, given that import duties would only be reduced, not increased. Where the proposed regulation reduces import duties on certain products, but not others, or opens tariff quotas, the choice is made under a proper legal basis. Where the proposed regulation would grant implementing powers to the Commission to suspend the reduction of import duties or the tariff quotas, this suspension would only reinstate the legal situation existing before the adoption of the proposed regulation.

4.BUDGETARY IMPLICATIONS

The continued liberalisation of industrial tariffs, as well as for non-sensitive agricultural and seafood products, will have a limited negative impact on the budget of the Union in the form of forgone customs duties due to tariff liberalisation for the products covered by the tariff lines in annex to this proposed regulation.

Taking the year 2024 as a reference, the overall estimated impact arising from duties foregone from suspended tariffs on goods originating in the United States on the Union budget is EUR 3.6 billion 2 . Overall, there are three categories of goods: Agricultural products, seafood products, and industrial products. For agricultural products, the overall estimated loss of customs revenue is EUR 230 million, stemming from both liberalisations and Tariff-Rate Quota systems. Thus, the loss for the Union budget is estimated to be EUR 172.5 million. For seafood products from the United States, the total estimated loss of revenues from duties foregone amounts to EUR 63 million, meaning that the estimated loss to the Union budget amounts to roughly EUR 47 million. For industrial goods from the United States, the estimated revenue from foregone duties would amount to EUR 4.6 billion, implying a loss to the Union budget of EUR 3.4 billion.

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

Not applicable

•Explanatory documents (for directives)

Not applicable

•Detailed explanation of the specific provisions of the proposal

Article 1 provides for the adjustment of customs duties for goods listed in Annexes I to II to this Regulation that are imported into the Union and that originate in the United States.

Article 1 also provides for the introduction of partial liberalisation system for certain goods listed in Annexes II to the proposed Regulation that are imported into the Union and that originate in the United States.

Article 2 provides for the opening of tariff quotas for imports of goods listed in Annex III to the proposed Regulation that are imported into the Union and that originate in the United States. It outlines the tariff quota system as indicated in Annex III, which provides the specific quota duty rates, quota volumes for those goods and the management of those quotas.

Article 3 provides for the suspension, in whole or in part, of the adjustment of customs duties referred to in Article 1 and the tariff quotas referred to in Article 2 under the circumstances outlined in Article 3. It specifies that a suspension is subject to the adoption of an implementing act by the Commission in accordance with relevant procedures.

Article 4 provides the Committee procedure to be followed for such suspension of the adjustment of customs duties, the partial liberalisation and the tariff quotas.

Article 5 provides for the rules applicable to determine the origin of a good.

Article 6 provides details on the entry into force of the proposed Regulation.

2025/0261 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the adjustment of customs duties on the import of certain goods originating in the United States of America and opening of tariff quotas for imports of certain goods originating in the United States of America

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)The Union and the United States of America (the ‘United States’) have the largest and deepest bilateral trade and investment relationship in the world and have highly integrated economies. The total two-way trade between them was worth more than EUR 1.6 trillion in 2024. This deep and comprehensive partnership is underpinned by significant mutual investment in each other's markets worth around EUR 5.3 trillion.

(2)On 21 August 2025 the Union and the United States issued a Joint Statement on a European Union – United States Framework Agreement on Reciprocal, Fair, and Balanced Trade (the ‘Joint Statement’) 3 . In the Joint Statement, the United States committed to modify certain tariffs applicable to Union imports in line with that political agreement, reducing the applicable rate to an all-inclusive tariff ceiling of 15 %. The United States Executive Order (14326) of 31 July 2025 reflects that commitment from 7 August 2025. From 1 September 2025, the United States will also apply only the Most Favoured Nation (MFN) tariff to certain Union products such as unavailable natural resources (including cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors. The Union and the United States committed to consider other sectors and products that are important for their economies and value chains for inclusion in the list of products for which only the MFN tariffs would apply.

(3)The Union and the United States intend the Joint Statement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship.

(4)The Union has committed to eliminate tariffs on all United States industrial goods and to provide preferential market access for a wide range of United States seafood and agricultural goods, including tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat. The Union and the United States have committed to negotiate rules of origin that would apply to these trade benefits.

(5)Accordingly, the Union should adjust the customs duties on imports of certain goods and open tariff quotas for imports of certain goods originating in the United States, adopting preferential tariff measures as referred to in Article 56 of Regulation (EU) No 952/2013 of the European Parliament and of the Council 4 .

(6)The adjusted customs duties and the tariff quotas should apply for as long as the United States is effectively implementing the Joint Statement.

(7)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to suspend the application of this Regulation in specific circumstances. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council 5 .

(8)The origin of a good should be determined in accordance with the applicable Union legislation, notably, Article 59 of Regulation (EU) No 952/2013, until rules on preferential origin as referred to in Article 64(2) and (3) of that Regulation have been adopted to implement the outcome of the negotiations on rules of origin referred to in the Joint Statement.

(9)In view of the importance of avoiding disruption of the trade and investment relationship between the Union and the United States, this Regulation should enter into force on the day following that of its publication,

HAVE ADOPTED THIS REGULATION:

Article 1

Adjustment of customs duties

1.The applicable customs duties of the Common Customs Tariff on imports into the Union of the goods classified under the Combined Nomenclature (CN) codes listed in Annex I and originating in the United States shall be 0 %.

2.The ad valorem component of the Common Customs Tariff shall not be applied on imports into the Union of the goods classified under the CN codes listed in Annex II and originating in the United States. The specific duty on originating goods applied in a situation where the import price falls below the entry price shall be maintained.

Article 2

Opening of tariff quotas

1.Tariff quotas of the Union (‘quotas’) shall be opened for imports into the Union of the goods classified under the CN codes listed in Annex III and originating in the United States.

2.Within the quotas referred to in paragraph 1 of this Article, the preferential duties referred to in Article 56(2), point (e), of Regulation (EU) No 952/2013 shall be the duty rates set out in the column ‘in-quota rate’ and up to the aggregate quota volumes indicated in Annex III to this Regulation. Aggregate quota volumes for each quota shall run for twelve-months periods starting on the date of entry into force of this Regulation.

3.The import volume quotas set out in Annex III to this Regulation shall be managed by the Commission and the Member States in accordance with the management system for tariff quotas provided for in Articles 49 to 54 of Commission Implementing Regulation (EU) 2015/2447 6 .

Article 3

Suspension

1.The Commission may adopt an implementing act suspending in whole or in part the application of Article 1 or Article 2 in the following circumstances:

(a)where the United States fails to implement the Joint Statement or otherwise undermines the objectives pursued by the Joint Statement, or undermines access of Union economic operators to the United States market, or otherwise disrupts the trade and investment relationship between the Union and the United States;

(b)where there are sufficient indications that the United States will act in the manner referred to in point (a) in the future;

(c)where the adjustment of the customs duties referred to in Article 1, or the opening of tariff quotas referred to in Article 2, results in the importation of a good originating in the United States in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry of the Union;

(d)where a change of objective circumstances has occurred with regard to those existing at the time the Joint Statement was issued.

That implementing act shall be adopted in accordance with the examination procedure referred to in Article 4(2).

2.The implementing act referred to in paragraph 1 shall apply for as long as the circumstances referred to in paragraph 1 persist.

Article 4

Committee procedure

1.The Commission shall be assisted by the Trade Barriers Committee established by Article 7 of Regulation (EU) No 2015/1843 of the European Parliament and of the Council 7 .

2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 5

Rules of origin

For the purposes of this Regulation, the origin of a good shall be determined in accordance with Article 59 of Regulation (EU) No 952/2013, until rules on preferential origin as referred to in Article 64(2) and (3) of that Regulation have been adopted.

Article 6

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

LEGISLATIVE AND FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE3

1.1.Title of the proposal/initiative3

1.2.Policy area(s) concerned3

1.3.Objective(s)3

1.3.1.General objective(s)3

1.3.2.Specific objective(s)3

1.3.3.Expected result(s) and impact3

1.3.4.Indicators of performance3

1.4.The proposal/initiative relates to:4

1.5.Grounds for the proposal/initiative4

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative4

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.4

1.5.3.Lessons learned from similar experiences in the past4

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments5

1.5.5.Assessment of the different available financing options, including scope for redeployment5

1.6.Duration of the proposal/initiative and of its financial impact6

1.7.Method(s) of budget implementation planned6

2.MANAGEMENT MEASURES7

2.1.Monitoring and reporting rules7

2.2.Management and control system(s)7

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed7

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them7

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)7

2.3.Measures to prevent fraud and irregularities7

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE8

3.1.Name of the proposal8

3.2.Budget lines8

3.3.Financial impact 8

4.OTHER REMARKS9

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

Proposal for a Regulation of the European Parliament and of the Council on the adjustment of customs duties for certain goods originating in the United States of America and opening tariff quotas of the Union for certain goods originating in the United States of America

1.2.Policy area(s) concerned

Trade

1.3.Objective(s)

1.3.1.General objective(s)

Maintain additional opportunities for the Union and United States operators and avoid deterioration of trade relations with the United States by keeping tariffs not applied or reduced.

1.3.2.Specific objective(s)

Specific objective No

Adjust customs duties and open autonomous tariff quotas for certain goods originating in the United States to implement the Union’s commitments as part of the political agreement between the Union and the United States of 31 July 2025 and the Joint Statement of 21 August 2025.

1.3.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

The expected result is the non-application of customs duties by suspension of tariffs on all industrial goods originating in the United States and provision of preferential market access for some seafood and agricultural goods. These preferential tariff reductions are part of the Union’s implementation of its commitments on market access resulting from the political agreement and Joint Statement of 31 July 2025 and 21 August 2025, respectively. These consist of granting duty-free treatment to the remaining industrial goods not yet subject to duty-free treatment, representing 34% of industrial imports in 2024. For seafood and agricultural goods, preferential market access is proposed to be provided to non-sensitive agricultural products only, where there is a Union interest to facilitate imports, through partial liberalization for certain agricultural imports as well as through TRQs. The Union’s swift implementation as part of the political agreement with the United States is expected to stabilise the trade relationship and solidify the commitments made by both the Union and the United States to ensure that Union firms will retain a competitive position on the US market.

1.3.4.Indicators of performance

Specify the indicators for monitoring progress and achievements.

N/A as the sole objective is the adjustment of customs duties for certain goods originating in the United States and opening of tariff quotas of the Union for certain goods originating in the United States

1.4.The proposal/initiative relates to:

 a new action

 a new action following a pilot project / preparatory action 8

 the extension of an existing action

 a merger or redirection of one or more actions towards another/a new action

1.5.Grounds for the proposal/initiative

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

Adoption of proposed Regulation according to Ordinary Legislative Procedure and entry into force of proposed Regulation are to be pursued in the shortest possible timeframe.

The Regulation is meant to enter into force on the day following that of its publication in the Official Journal of the European Union.

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.

According to Article 5(3) of the TEU, the subsidiarity principle does not apply in areas of exclusive Union competence. The customs union and the common commercial policy is listed among the areas of exclusive competence of the Union in Article 3 of the TFEU. This policy includes the negotiation of trade agreements and the adoption of trade policy measures including tariff reductions pursuant to, inter alia, Article 207 TFEU.

1.5.3.Lessons learned from similar experiences in the past

Faced with the unprecedented level of unilateral US tariffs affecting around 70% of EU exports to the United States, and ongoing US Section 232 investigations which would affect around 97% of EU export to the United States should tariffs be imposed, the provision of preferential market access commitments is imperative to stabilize the trade relationship with the United States as provided in the political agreement reached on 27 July 2025. In line with its own commitments under the political agreement, the United States already implemented the agreed 15% all-inclusive tariff ceiling for most goods subject to US reciprocal tariffs through an Executive Order issued on 31 July effective since 7 August 2025. The implementation of the proposed Regulation will therefore solidify the commitments of the political agreement of 27 July 2025 and take its implementation forward.

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

N/A

1.5.5.Assessment of the different available financing options, including scope for redeployment

N/A

1.6.Duration of the proposal/initiative and of its financial impact

limited duration

– in effect from [DD/MM]YYYY to [DD/MM]YYYY

– financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.

Unlimited duration

–Implementation with a start-up period from 2025 to YYYY,

–followed by full-scale operation.

1.7.Method(s) of budget implementation planned

 Direct management by the Commission

– by its departments, including by its staff in the Union delegations;

– by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

– third countries or the bodies they have designated

– international organisations and their agencies (to be specified)

– the European Investment Bank and the European Investment Fund

– bodies referred to in Articles 70 and 71 of the Financial Regulation

– public law bodies

– bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees

– bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees

– bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

–bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

N/A

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules