U.S. Trade Policy and Tariff Actions
- EU lawmakers reach provisional agreement implement the U.S. reciprocal framework agreement: On 20 May, the European Parliament's International Trade Committee and EU member state negotiators reached a provisional agreement to proceed with the implementation of the reciprocal framework agreement with the U.S., first announced in August 2025. With the conclusion of EU negotiations, the internal ratification/adoption process must be concluded before the EU can implement the agreement. No public timeline is available for when the internal ratification process will be concluded. As part of the agreement among EU stakeholders, the EU introduced:
- A safeguard mechanism which allows the EU to suspend parts or the entire agreement if the U.S. fails to meet its commitments under the 2025 joint statement.
- A sunset clause which allows for the agreement and preferential market access to expire by 31 December 2029 unless renewed.
Once implemented, the EU has committed to eliminating the 1.7% standard/MFN tariff on U.S. origin food processing and packaging machinery of 8422 and 8438.
- First official USMCA negotiating round with Mexico set for week of 25 May: The first official bilateral negotiating round of the USMCA joint review between the U.S. and Mexico is scheduled for the week of 25 May with USTR Greer confirmed to meet Mexican President Sheinbaum on 27 May. Bilateral negotiations between the U.S. and Canada have not yet been formally announced.
Trade Policy Actions by Other Countries
- EU and Mexico sign modernized free trade agreement: On 22 May, reporting indicated the EU and Mexico are set to formally sign the modernized EU-Mexico Global Agreement and accompanying Interim Trade Agreement (iTA). The agreement will replace the EU-Mexico trade accord in place since 2000. Food processing and packaging machinery of 8422 and 8438 are already preferentially duty-free into both markets under the existing 2000 trade agreement.
