EU Proposes Tariff Removal on US Goods to Accelerate Car Duty Cuts

The European Commission has proposed removing tariffs on imported U.S. industrial goods to accelerate the reduction of U.S. duties on European cars, marking the first step in implementing a trade framework agreed upon by President Donald Trump and Commission President Ursula von der Leyen. The U.S. will reduce its tariffs on EU-made cars from 27.5% to 15%, effective August 1, while the EU will cut its duties and increase purchases of U.S. energy products, though the deal remains asymmetric as Washington retains tariffs on 70% of EU exports. The EU proposal also includes preferential treatment for some agricultural and seafood products, extending the duty-free policy for U.S. lobsters. Despite Trump's previous criticism of the EU, European governments view the agreement as preferable to the threat of 30% tariffs on EU imports. The EU's legislative proposal requires approval from its 27 member states and the European Parliament, a process that may take several weeks, but the U.S. tariff cuts on cars will proceed immediately. This agreement helps ease trade tensions between the two largest trading partners while other U.S. tariffs on countries like India and South Korea remain in place.