Europe Plans to Accelerate the Elimination of Tariffs on American Goods in Response to Trump's Request

Sada News - The European Union is seeking to expedite the issuance of legislation by the end of this week that would remove all tariffs imposed on American industrial goods, in response to a request from U.S. President Donald Trump, before the United States reduces tariffs on European car exports.

The European Commission, responsible for trade affairs in the European Union, will also grant preferential tariff rates on certain seafood and agricultural products, according to informed sources.

The European Union acknowledged that the trade arrangement reached with Trump favors the United States, but emphasized that the agreement is necessary to provide stability and certainty for businesses.

Europe and America's Trade Agreement

Commission President Ursula von der Leyen had previously described the agreement as "strong, though not perfect." This move comes despite Trump threatening to impose additional tariffs and sanctions on countries that tax digital services, without specifying which countries he means or whether the European Union would be affected.

Trump has repeatedly criticized the European Union's regulations on technology and antitrust, which target American tech giants like Google, a subsidiary of Alphabet, and Apple.

What is the Size of American Tariffs on European Goods?

Exports from the European Union of cars and parts heading to the United States are currently subject to a 27.5% tariff, although the United States and the EU have reached a trade agreement that will reduce U.S. tariffs on nearly all European products to 15%. However, Trump indicated that this rate would not apply to cars until a law is enacted to eliminate industrial tariffs and others.

If the EU passes the law by the end of the month, the 15% tariff on European cars will be applied retroactively starting from August 1. Cars are one of the most important exports of the bloc to the United States, with Germany alone exporting new cars and parts worth $34.9 billion to the U.S. in 2024.

The Commission will bypass conducting an impact assessment of the proposal, a usual procedure in such cases, in an effort to move forward at a rapid pace, according to insiders who spoke on condition of anonymity.