EU open to extending lobster deal in package on Trump tariffs, FT reports

THE European Union is open to extending a deal which allows the duty-free import of U.S. lobsters as part of a broader package aimed at removing U.S. President Donald Trump's tariffs, the Financial Times reported on Thursday, citing two officials.

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The EU-US lobster tariff deal, made during Trump's first term, expires on July 31.
The EU could face steep US tariffs soon, with Trumps 90-day pause ending July 8.
The EU prefers negotiation but is ready to hit back with tariffs on US$107 billion in US goods.

The EU's current regulation eliminating customs duties for fresh and frozen lobsters from the U.S. expires on July 31. The lobster deal between the U.S. and EU was struck in 2020 during Trump's first term.

Bernd Lange, chair of the European parliament's trade committee, told the FT the lobster trade was not very economically important, but led to de-escalation from Trump.

"(The deal) is expiring at the end of July," he said. "I'm really in favour of extending it."

"The continuation of the lobster agreement will depend on the outcome of ongoing negotiations, to which the EU remains fully committed," Olof Gill, Commission spokesperson for trade, said in an emailed statement to Reuters.

The EU faces 25% U.S. import tariffs on its steel, aluminium and cars. It also faces tariffs of 10% for almost all other goods, a levy that could rise to 20% after Trump's 90-day pause expires on July 8.

The European Commission has proposed countermeasures on up to 95 billion euros ($107.60 billion) of U.S. imports if tariff negotiations with Washington fail.

The Commission has repeatedly said it would prefer a negotiated solution rather than tit-for-tat tariffs.

Reuters could not immediately confirm the FT report.