EU set to propose removal of US tariffs in response to Trump's demand

The European Union is set to fast-track legislation this week to remove all tariffs on US industrial goods in response to President Donald Trump’s request, paving the way for the US to lower duties on EU car exports.

According to sources familiar with the matter, the European Commission will also offer preferential tariff rates on certain seafood and agricultural products, Caliber.Az reports per foreign media.

While the deal largely benefits the US, EU officials stress it is necessary to provide businesses with stability and certainty. Commission President Ursula von der Leyen previously described the arrangement as “a strong, if not perfect deal.”

The announcement arrives amid Trump’s ongoing threats to impose tariffs on countries taxing US online services, though it is unclear which nations might be targeted or whether the EU would be affected. The US has long criticised EU tech and antitrust rules affecting American firms such as Google and Apple.

Currently, EU cars and auto parts face a 27.5% tariff on exports to the US. Under the trade agreement, American duties on nearly all European products would drop to 15%, but Trump has insisted that the reduction for cars will only take effect once the EU eliminates its own industrial tariffs.

If the EU submits legislation by the end of the month, the lower US tariff could be applied retroactively from August 1.

Automobiles are among Europe’s key exports to the US, with Germany alone sending $34.9 billion worth of new cars and parts in 2024. In an effort to speed up the process, the Commission has decided to bypass the usual impact assessment for the proposal.

By Aghakazim Guliyev