The regulations of the European Parliament and of the Council dated 25 June 2025, which aim to implement the Union’s commitments resulting from the Joint Statement of 21 August 2025[1] into its regulatory framework, have been published in the Official Journal of the European Union. More specifically, Regulation (EU) 2026/1455[2] on the adjustment of customs duties on imports 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 aims to apply the main measures affecting industrial and agri-food products imported into the territory of the European Union (“EU”). This Regulation confirms the unique nature of this agreement in comparison with the trade instruments to which the EU is usually a party, whether they are economic partnership agreements or free trade agreements concluded in the context of bilateral and multilateral trade under the framework of the World Trade Organisation.
The Legislative Process of the Joint Statement
The Turnberry Agreement and its Joint Statement of 21 August 2025 are not comparable to free trade agreement or economic partnership agreement in the first place when it comes to the legislative process of implementation. Article 218 of the Treaty on the Functioning of the European Union (“TFEU”) sets the framework for negotiations and agreements between the EU and third countries or international organisations. In this case, the measure was adopted under the ordinary legislative procedure:
- the Commission has initially proposed the two legislative proposals of 28 August 2025 before the Parliament and the Council;
- in reaction to the decision of the Supreme Court of the United States dated 20 February, which declared the so-called “reciprocal” tariffs outside of the scope of the International Emergency Economic Powers Act (IEPPA), and therefore lacking legal basis, the legislative work of the European Parliament was suspended;
- in March 2026, the European Parliament finally adopted an amended version of the two texts presented[3], including a conditional clause with the aim of rebalancing European tariff concessions. However, it was only on 16 June that the Council and the European Parliament reached a provisional agreement on the texts; and
- on 30 June, Regulation 2026/1455 and Regulation (EU) 2026/1461 (concerning measures applicable to imports of lobsters) are finally published. They take effect at the latest – for Regulation 2026/1455 – the day after this publication, thus allowing the EU to respect the deadline set by President Trump’s administration to respect its political commitments, the 4th of July.
The clauses governing the implementation of the Union’s commitments
In light of the divergence of trade interests between the Member States, the imbalance of European and American commitments, as well as the lack of stability of the normative and legislative framework of the United States (“US”), the European Parliament has made the Union’s commitments subject to three clauses in a very unusual way:
- Suspensive clause, by application of which the Commission will be able to suspend tariff preferences, if the US:
- fails to implement its commitments, including but not limited to introducing new customs duties on European products. In this regard, for example, the Commission is empowered to suspend tariff preferences where, on 31 December 2026, the US continues to apply a tariff rate higher than 15 % on steel and aluminium derivative products imported from EU. On the US side, however, this provision has been anticipated by a Proclamation of 1 June – applicable since 8 June – which had the effect of granting more flexibility in the tariff regimes applicable to these products and switching certain products from the 25% additional duty to a 15% additional duty, including MFN tariffs; or
- undermines access of Union economic operators to the US market, discriminates against or targets Union economic operators aiming to operate, or already operating, in the US, or otherwise disrupts EU-US trade and investment relations;
- Safeguard clause, such as the clause inserted in the draft agreement between the Union and Mercosur, and which allows the Commission to suspend in whole or in part the application of Regulation 2026/1455 if “there is sufficient evidence”, obtained following an investigation at the initiative of the Commission or at the request of the Union industry, of the use of the granted concessions to import a US product “in such increased quantities, in absolute terms or relative to Union production, and under such conditions, as to cause or threaten to cause serious injury to the Union industry”; and
- Sunset clause according to which Regulation 2026/1455 expires on 31 December 2029, unless renewed by the Union.
The lack of harmonization of preferential rules of origin
Finally, the uniqueness of this agreement lies in the lack of preferential rules of origin harmonisation. Indeed, the Joint Statement of August 2025 simply announced that “The United States and the European Union will negotiate rules of origin that ensure that the benefits of the Agreement on Reciprocal Trade accrue predominately to the United States and the European Union.”
This means that for the time being, each party applies its own rules of non-preferential origin (for the EU, in accordance with Article 6 of Regulation (EU) 2026/1455, these will be those referred to in Title II, Chapter 2, Section 1 of the Union Customs Code).
However, while the Court of Justice of the European Union’ ruling CS Steel (C-86-24), dated 2 October 2025, has contributed to the convergence of the rules for determining the place of the “last substantial transformation“, granting the origin of the product, the American rules differ from those of the Union:
- the US assess the still largely case-law-based criterion of “substantial transformation” in relation to a change in the product’s name, character or use; while
- the EU codifies the rules of substantial transformation for each product, assessed in relation to a change in tariff heading, the acquisition of a new use, new specific properties and composition not previously possessed and which are not expected to undergo significant changes in quality at a later date (i.e. the product is of a nature to be directly usable for industrial processes).
The initial absence of preferential rules of origin highlights the exceptional nature of this agreement, which main goal is rather to ensure stability and predictability in transatlantic trade relations than to grant reciprocal preferences, which are the very essence of free trade agreements. In this new framework of EU-US relations, the Union has however indicated its willingness to continue negotiations with the US with a view to reaching a mutually beneficial agreement for other important sectors of its economy, such as the agri-food sector, as well the industrial goods sector. It is therefore valuable to remain vigilant regarding the possible extension of preferential treatment to new products, tariff headings or sectors.
[1] Joint Statement on a U.S.-European Union Framework for a Reciprocal, Fair and Balanced Trade Agreement, August 21, 2025, available at: https://policy.trade.ec.europa.eu/news/joint-statement-united-states-european-union-framework-agreement-reciprocal-fair-and-balanced-trade-2025-08-21_en
[2] Regulation (EU) 2026/1455 of the European Parliament and of the Council of 25 June 2026 on the adjustment of customs duties on imports 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, available at: https://eur-lex.europa.eu/eli/reg/2026/1455/oj/eng/pdf
[3] Amendment 1-108 and Amendment 109-114, available at: https://www.europarl.europa.eu/doceo/document/AGRI-AM-779723_EN.pdf ; https://www.europarl.europa.eu/doceo/document/AGRI-AM-779722_EN.pdf