The European Parliament and the Council of the EU reached an agreement on the legislation implementing the EU’s tariff commitments under the EU-US agreement from July and August 2025. The agreement is an important step towards providing greater stability and predictability in transatlantic trade relations for the recreational boating industry.

Under the agreement, EU tariffs on industrial goods imported from the US, including recreational boats and most products relevant to the boating sector, will be reduced to 0%. In parallel, the arrangement provides the long-awaited framework for EU exporters’ access to the US market under the agreed 15% all-inclusive tariff ceiling.

Several changes were negotiated during the legislative process to strengthen safeguards for the European industry. The main regulation will include a sunset clause, meaning that the EU’s 0% tariff rate will automatically expire on 31 December 2029 unless it is actively renewed. Before any extension, the European Commission will assess the impact of the measures on EU industry, SMEs and trade patterns with third countries. The agreement also addresses concerns linked to steel and aluminium derivatives. In 2025, the US added more than 400 product categories to the list of derivative steel and aluminium products subject to additional tariffs, including several components and products relevant for the boating sector. Under the agreed text, the EU Commission will be able to suspend tariff preferences by 31 December 2026 if the US continues to apply tariff rates above 15% on EU steel and aluminium derivative products.

In addition, the legislation includes a strengthened suspension clause, allowing the Commission to suspend tariff preferences if the US fails to address EU concerns regarding the treatment of exports that should benefit from the 15% all-inclusive ceiling. A safeguard mechanism will also allow the Commission to investigate and react if tariff preferences granted to the US lead to increases in imports that threaten to negatively affect EU industry. The Commission will also report quarterly on changes in trade volumes and values for US exports covered by the agreement.

From the perspective of European exporters, the provisional agreement is welcome as it provides an important degree of stability and certainty. The additional safeguards should also give the EU stronger tools to protect industry interests where needed. Particularly important for the boating sector is the added pressure on the US to lower tariffs on steel and aluminium derivative products to the agreed 15% rate, as higher tariffs continue to create concerns for manufacturers of components and products with significant steel and aluminium content.

EBI will continue to monitor the next steps in the process, including formal approval of the legislation, and will remain in close contact with the EU Commission to protect the interests of the recreational boating industry. Members are encouraged to share updates on the situation of their exporting companies with the EBI Secretariat, so that sector concerns can continue to be raised at EU level.