EU dangles lobster deal in bid to ease Trump-era tariffs

The European Union is considering extending a tariff-free deal on American lobsters in a bid to de-escalate renewed trade tensions with the United States under President Donald Trump.

The original agreement, struck in 2020 during Trump’s first term, eliminated EU tariffs on US lobster imports as the president aimed to shore up political support in the key fishing state of Maine ahead of his re-election campaign. However, the deal is set to expire on July 31—shortly after the scheduled end of a current trade truce between the two sides, Caliber.Az reports via the Financial Times.

Two officials told the Financial Times that the European Commission is open to prolonging the lobster agreement as part of a broader package to roll back tariffs imposed by Trump since his return to office in January. 

Negotiations have gained momentum, with both parties exchanging detailed documents last week. Talks cover a range of contentious issues, including the EU’s trade surplus in goods, investment opportunities, and US concerns about regulatory barriers.

The 2020 lobster agreement removed an 8 per cent EU tariff on all lobster imports. The deal followed Trump’s complaints that Canadian lobster exporters were gaining an unfair advantage due to tariff-free access under a separate EU-Canada trade agreement.

In exchange, the EU secured a US commitment to halve tariffs on €160 million worth of EU exports, including prepared meals, crystal glassware, cigarette lighters, and lighter parts.

US lobster exports to the EU, once worth €93 million in 2017, had dropped to €22.3 million by 2020, accounting for just 11 per cent of the EU market. By 2024, exports had rebounded to €69.2 million—around a quarter of the market.

Bernd Lange, chair of the European Parliament’s trade committee, said the lobster deal was “not so economically important” but had contributed to a de-escalation in tensions. “I’m really in favour of extending it,” he said. “[The deal] is expiring at the end of July.”

Lange stressed the need for innovative approaches in addressing US complaints. “We have to be really creative in looking also at what in the mind of our American counterparts could be recognised as unfair.”

He added that while the EU should examine its food and animal health standards, these regulations must remain scientifically grounded. “In general, of course, our food safety standards and animal health standards cannot be touched,” Lange said, but “we have to look at [each] restriction to see if they are really based on scientific evidence.”

However, Lange, a German Social Democratic Party MEP, made clear that the EU would not alter environmental regulations or taxes in response to US pressure.

By Sabina Mammadli