EU Proposes Removing Tariffs to Reduce US Duties on Cars

The European Commission has proposed reducing some of its tariffs on U.S. goods to gain relief from U.S. tariffs on European Union cars and car parts.

The Commission said in a press release that its proposals include eliminating tariffs on U.S. industrial goods, providing preferential market access for some U.S. seafood and agricultural goods, and prolonging the tariff-free treatment of lobster and expanding it to include processed lobster.

These proposals pave the way for the implementation of a European Union-U.S. joint statement that was issued Aug. 21, the release said.

If these proposals are approved by the European Parliament and Council, the U.S. is expected to reduce its tariff on EU cars and car parts from 27.5% to 15%, according to the release.

“The EU-US deal goes beyond a step toward stability,” Maros Sefcovic, commissioner for trade and economic security, interinstitutional relations and transparency at the European Commission, said in the release. “It lays the groundwork for closer cooperation on shared challenges, turning common goals—such as those related to steel—into real results.”

“It is in our mutual interest that both sides honor their commitments and ensure full implementation of the agreement,” Sefcovic said. “I particularly welcome the reduction of tariffs on cars and car parts to 15%, effective August 1, which will help our automotive industry stay competitive on the global stage.”

It was reported Wednesday (Aug. 27) that the European Union was preparing to introduce legislation this week aimed at scrapping all tariffs on American industrial products to meet a key demand from President Donald Trump before Washington lowers its duties on EU cars.

On Aug. 12, it was reported that European car exporters were wrestling with uncertainty surrounding American tariffs.

Lasse Kristoffersen, CEO of Wallenius Wilhelmsen, operator of a car-carrier fleet, told Reuters at the time: “So far we actually do not know exactly what the tariff level will be. Our customers do not know either, so it is too early to say what they’ll do.”

It was reported Aug. 18 that exports from the EU’s 27 member states to the U.S. dropped 10% year over year in June due to new U.S. tariffs.

These exports had reached a record high in March when U.S. importers brought in goods from the region ahead of the tariffs but fell in April and now stand at their lowest level since the end of 2023.

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