Trade offensive: EU signs agreement with Mexico and advances US industrial tariff deal as it diversifies partners
The European Union is pressing ahead with an active trade agenda as it seeks to diversify partnerships amid global tensions. On 22 May 2026, the Commission signed trade agreements with Mexico, deepening ties with one of Latin America’s largest economies and reinforcing the bloc’s network of preferential arrangements at a time of transatlantic uncertainty.
The EU-US industrial tariff deal
In parallel, the Council of the EU and the European Parliament have agreed to eliminate tariffs on all US industrial goods and to provide preferential market access for certain US agricultural and seafood products. The move delivers on commitments made in the EU-US Joint Statement and marks an important step in stabilising a transatlantic relationship that has been buffeted by the Trump administration’s tariff posture.
Trade ministers, meeting in the Foreign Affairs Council’s trade configuration, have been reviewing the state of play of economic security and the impact of the Middle East conflict on trade flows. The energy shock and the Strait of Hormuz disruption have added urgency to the EU’s push for supply-chain resilience and diversified sourcing.
Mercosur and the wider picture
The Mexico agreement follows the entry into force of the EU-Mercosur deal, opening a market of 260 million inhabitants to European exporters. Together, these arrangements signal a strategic pivot: as Washington’s trade policy grows less predictable, Brussels is methodically building alternative channels. For European businesses, the diversification offers a hedge against concentration risk — though the gains will take time to materialise against the immediate drag of the energy shock.
