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BRUSSELS — The European Union has formally proposed removing tariffs on U.S. industrial goods, a key step in implementing last month’s transatlantic trade agreement aimed at reducing American duties on European car exports.
Under the deal, the U.S. will lower its tariff on EU-made cars and car parts from 27.5% to 15%, a move expected to save European automakers over €500 million in duties within a single month. The tariff cut is set to apply retroactively from August 1, pending EU legislative approval.
European Commission President Ursula von der Leyen welcomed the development, stating, “This is not the end of the process; we continue to engage with the U.S. to agree more tariff reductions, to identify more areas of cooperation, and to create more economic growth potential.”
In return, the EU has committed to purchasing $750 billion worth of U.S. energy and investing at least $600 million in strategic sectors across the United States. The broader agreement also includes preferential access for American seafood and agricultural products.
While the proposal must still pass through the European Parliament and Council, U.S. tariff relief is expected to take effect ahead of formal ratification, marking a significant milestone in restoring stability to EU-U.S. trade relations.
