EU Considers Extending U.S. Lobster Tariff Deal Amid Trade Tensions

The European Union is contemplating an extension of a deal that allows duty-free imports of U.S. lobsters, according to a Financial Times report citing two officials. This move is part of a broader strategy to eliminate tariffs imposed by former U.S. President Donald Trump.

The existing EU agreement, removing customs duties on fresh and frozen lobsters from the U.S., is set to expire on July 31. The deal, originally struck in 2020, played a role in easing trade tensions during Trump's term. Bernd Lange, chair of the European parliament's trade committee, stated his support for an extension due to its de-escalatory benefits.

Meanwhile, the EU faces significant tariffs on various goods imported into the U.S., with potential hikes looming as Trump's tariff pause approaches its end. With the European Commission proposing countermeasures, the focus remains on achieving a negotiated trade resolution rather than engaging in retaliatory tariffs.

(With inputs from agencies.)