The European Union said it's following through on a demand by President Donald Trump and is putting forward proposals to remove all tariffs on US industrial goods, give preferential treatment to some US agricultural and seafood products and prolong the duty-free treatment of American lobster.
This will pave the way for the US to lower its tariffs on European cars and auto parts to 15% from 27.5%, according to a Thursday statement from the European Commission, which handles trade matters for the EU. The lower rate on cars will start retroactively from Aug. 1.
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The EU struck a political trade arrangement with the US last month, which Commission President Ursula von der Leyen has described as “a strong, if not perfect deal.” She's defended the agreement, saying it's necessary to give businesses stability and certainty.
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Even though the deal would see American tariffs on nearly all European products drop to 15%, Trump said that wouldn't apply to cars until legislation was proposed to remove industrial and other duties.
Automobiles are one of the bloc's most significant exports to the US, with Germany alone exporting $34.9 billion of new cars and parts to the US in 2024.
The commission will skip conducting an impact assessment — the normal procedure in these situations — on the proposal in a bid to move forward quickly, Bloomberg reported earlier.
The move comes even as Trump has threatened to impose tariffs and other penalties on countries that tax online services, without specifying which nations he would target and whether the EU would be involved. Trump has long railed against EU tech and antitrust regulation over US tech giants including Alphabet Inc.'s Google and Apple Inc.
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