U.S. Trade Policy and Tariff Actions
- European Parliament formally approves EU-US Framework Agreement: On 16 June, the European Parliament voted to adopt the two legislative acts implementing the EU's tariff commitments under the August 2025 EU-US Framework Agreement. The legislation now moves to the EU Council for formal approval, after which it will be published in the EU's Official Journal and enter into force the following day. The final legislation will affect trade of food processing and packaging machinery in the following ways:
- All EU tariffs on U.S. industrial goods will be eliminated, including the 1.7% MFN tariff on U.S.-origin food processing and packaging machinery of 8422 and 8438.
- A sunset clause sets expiry on 31 December 2029, unless renewed.
- A safeguard mechanism has been incorporated into the EU legislation, which allows the EU to reimpose tariffs if U.S. imports surge and threaten EU industry.
- The EU Commission may suspend tariff preferences if the U.S. continues to apply tariffs above 15% on EU steel and aluminum derivatives.
Trade Policy Actions by Other Countries
- UK-India Free Trade Agreement to enter into force 15 July 2026: On 17 June, the UK and India’s governments confirmed that the UK-India Comprehensive Economic and Trade Agreement (CETA), will enter into force on 15 July 2026. Upon entry into force, food processing and packaging machinery of 8422 and 8438 imported into India from the UK will have MFN tariffs of 7.5% preferentially reduced to duty-free immediately or in equal annual installments in up to 10 years.
- Switzerland's lower house rejects EFTA-Mercosur trade deal: On 18 June, Switzerland's National Council (lower house) voted to reject the European Free Trade Association, members including Iceland, Liechtenstein, Norway, and Switzerland (EFTA), and the Southern Common Market (Mercosur) with members in including Argentina, Brazil, Bolivia, Paraguay, and Uruguay free trade agreement, signed in September 2025. The EFTA-Mercosur deal, if ratified, would grant tariff-free access of Swiss exports to Mercosur, including machinery. Please note that ratification and final implementation remain uncertain and no public timeline is available.
