EU plans to reduce tariffs on American industrial goods to protect its automakers from potential harm

Trade agreement proposal leads to potential cut in American tariffs on European automobiles, lowering them from 27.5% to 15%.

, and Administrator

2025 September 11 . 3:19 PM

1 min read

EU proposes reducing tariffs on American industrial goods to protect its automobile manufacturers

EU plans to reduce tariffs on American industrial goods to protect its automakers from potential harm

In a significant move towards strengthening transatlantic trade relations, the European Commission has proposed new legislation to eliminate tariffs on U.S. industrial goods. This proposal is a precondition for President Donald Trump's administration to reduce tariffs on European autos, as part of the transatlantic trade deal unveiled a week ago.

The elimination of tariffs on U.S. industrial goods is expected to provide preferential market access for U.S. seafood and non-sensitive agricultural goods. This includes the reduction in tariffs on U.S. industrial goods and the extension of duty-free treatment for crabs and processed crabs, a proposal that was made by the United States.

Moreover, the proposal aims to provide preferential market access for a range of U.S. seafood, with the second proposal from the European Commission extending tariff-free treatment to processed lobster, in addition to raw lobster.

Currently, tariffs on European autos stand at 27.5 percent. If the proposed legislation is implemented, these tariffs would be reduced to 15 percent. The U.S. would backdate the reduction in its auto tariffs to Aug. 1, as part of the transatlantic trade deal.

The reduction in Washington's tariffs on European autos is contingent upon the elimination of tariffs on U.S. industrial goods. The transatlantic trade deal, in its entirety, includes the U.S. reducing its auto tariffs.

This proposed legislation is a step forward in fostering greater economic cooperation between the European Union and the United States, and it is hoped that it will lead to increased trade and economic growth on both sides of the Atlantic.