EU to Propose Removing US Tariffs This Week to Meet Trump Demand
The European Union will seek to fast track legislation by the end of the week to remove all tariffs on US industrial goods, a demand made by President Donald Trump before the US will lower its duties on the bloc’s automobile exports.
The European Commission, which handles trade matters for the EU, will also give preferential tariff rates on certain seafood and agricultural goods, according to people familiar with the matter.
The EU has conceded that the trade arrangement struck with Trump favors the US but that the accord is necessary to give businesses stability and certainty. Commission President Ursula von der Leyen previously described it as “a strong, if not perfect deal.”
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.
EU cars and auto parts currently face a 27.5% tariff on exports to the US. Even though the US and EU struck a trade agreement that 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.
If the EU proposes the legislation by the end of the month, then the 15% tariff rate on European cars will be back-dated to Aug. 1. 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, said the people, who spoke on the condition of anonymity.
Source : Bloomberg
