EU zero-tariff offer for US products aims to unlock trade while keeping sensitive goods protected

EU zero-tariff

The EU zero-tariff offer for US products sets out wide duty relief to defuse transatlantic tensions. The EU zero-tariff offer for US products targets industrial goods, plastics and selected agri-food via tariff-rate quotas. As a result, the EU zero-tariff offer for US products could secure a 15pc US tariff ceiling for EU exports, applied retroactively.

What the offer covers and why it matters

Brussels proposes zero tariffs on fertilisers, plastics, machinery, autos and parts, wood and pulp, paper, ceramics and leather. However, access will run through product-specific TRQs such as 25,000t for pig meat and 400,000t for crude soybean oil. The package also removes import duties on US-origin polyethylene. Therefore, EU manufacturers and farmers could see cheaper inputs and improved supply security. A safeguard clause allows the EU to suspend concessions if import surges threaten domestic industry.

What the offer excludes and the political trade-off

The plan excludes “sensitive” farm goods such as beef, poultry and ethanol. Meanwhile, the EU lists mineral fuels and a broad set of chemicals, reflecting industrial priorities over agriculture. Senior officials framed fertiliser access as a hedge against dependence on Russian supply. As a result, the offer balances cost relief for industry with protection for politically sensitive sectors. Final approval still requires the European Parliament and member states.

The commission expects the US to uphold a 15pc tariff ceiling on EU cars and parts once the deal is approved. Moreover, Washington would apply the ceiling retroactively from 1 August under the EU-US joint statement. Therefore, automakers could claw back costs tied to recent tariff uncertainty. Implementation details on rules of origin and monitoring will determine the real-world value.

The Metalnomist Commentary

The offer steers relief toward energy-intensive value chains while ring-fencing farm sensitivities. Watch how TRQ administration, rules of origin and the auto tariff ceiling interact; frictions there can erase headline gains. If fertiliser flows shift toward US supply, European ammonia and nitrate producers may push harder for safeguards.