The European Union on Thursday put forward a formal proposal to eliminate tariffs on American industrial products, marking a major step in the U.S.-EU trade framework agreement. The move also guarantees that reduced levies on European automobiles will apply retroactively from the start of August.
In a statement, the European Commission — the EU’s executive body — explained that the elimination of duties on industrial goods, coupled with expanded market access for certain U.S. seafood and farm products, would secure reciprocal tariff relief from Washington for Europe’s auto industry dating back to August 1.
“These measures will help bring back stability and predictability to EU-U.S. trade and investment ties, benefiting companies, workers, and citizens on both sides of the Atlantic,” the Commission noted.
The plan still requires approval from both the European Parliament and the Council. It was first laid out in a joint U.S.-EU announcement last week, where Washington signaled it expected the EU’s legislative process to deliver the proposed changes.
The deal specifies that car tariffs would be reduced from the first day of the month in which the EU’s legislation was introduced — meaning the cuts take effect from August 1.
The breakthrough followed weeks of strained negotiations, culminating in a trade agreement announced at the end of July. U.S. President Donald Trump said at the time that the deal would impose a 15% duty on most European exports to the United States, including cars — a significant relief after earlier threats of a 30% tariff.
Under the terms of the agreement, the EU also pledged to buy $750 billion worth of U.S. energy and commit an additional $600 billion in U.S. investments.