The European Union will seek opportunities to accelerate the adoption of legislation by the end of the week to abolish all tariffs on US industrial goods, a demand made by President Donald Trump before the US lowers its tariffs on car exports from the bloc, UNN reports with reference to Bloomberg.
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The European Commission, which handles EU trade matters, will also provide preferential tariff rates on some seafood and agricultural products, according to sources familiar with the situation.
The EU has acknowledged that the trade agreement concluded with Trump is beneficial for the US, but necessary to ensure stability and certainty for businesses. European Commission President Ursula von der Leyen previously described it as a "strong, if not perfect, agreement."
This move comes amid Trump's threats to impose tariffs and other sanctions against countries that tax online services, without specifying which countries he would target or whether the EU would be involved. Trump has long opposed EU tech and antitrust regulation of American tech giants, including Google and Apple Inc., owned by Alphabet Inc.
Cars and car parts from the EU currently face a 27.5% tariff on exports to the US. Although the US and the EU have concluded a trade agreement that provides for a reduction of US tariffs on almost all European goods to 15%, Trump said that this would not apply to cars until legislation on the abolition of industrial and other tariffs is proposed.
If the EU proposes legislation by the end of the month, the 15% tariff rate on European cars will be applied retroactively from August 1. Cars are one of the bloc's most important exports to the US, with Germany alone exporting $34.9 billion worth of new cars and parts to the US in 2024.
The European Commission will skip conducting an impact assessment - a common procedure in such situations - on the proposal to move forward quickly, sources who spoke on condition of anonymity said.