Iceland can scrap all import tariffs tomorrow, EU entry not required

Iceland has the legal authority to remove all customs duties on imported goods immediately, and joining the European Union is not a prerequisite for such action. Removing tariffs on products from the EU, including certain agricultural items, would likely lower retail prices for those goods, although the overall impact on food prices is uncertain due to factors such as high Icelandic wages, transport costs and domestic taxes. The government could also impose new duties on imports from non‑EU countries such as China, where many items are currently tariff‑free, which might offset some price reductions. Analysts note that past EU accession by Sweden and Finland produced modest food‑price declines, and Iceland’s unique market conditions mean the exact outcome cannot be precisely forecasted.