EU Mulls Lobster Deal Extension Amid Tariff Tensions

The European Union is contemplating extending a significant trade agreement that allows U.S. lobsters to be imported duty-free, as reported by the Financial Times. This move forms part of broader attempts to dismantle tariffs introduced during the Trump administration.

The existing regulation that eliminates customs duties on fresh and frozen U.S. lobsters is set to expire on July 31. The initial deal, which was forged in 2020 during Donald Trump’s presidency, aimed to ease trade tensions. Bernd Lange, the chair of the European Parliament’s trade committee, emphasized the de-escalatory nature of the deal, advocating for its extension.

The EU is currently subject to 25% import tariffs on products like steel, aluminium, and cars, and faces additional tariffs on almost all other goods. The European Commission is prepared to implement countermeasures on up to 95 billion euros of U.S. imports if negotiations fail, yet it stresses preference for a negotiated resolution over retaliation.

(With inputs from agencies.)