The European Union (EU) will accelerate legislation by the end of the week in order to abolish all duties in their industrial products USAa request made by US President Donald Trump before the US reduced their duties to Union car exports.
The European Commission (Commission), which handles EU commercial issues, will also grant preferential tariff rates to certain seafood and agricultural products, according to sources cited by Bloomberg. The EU has admitted that the trade agreement that was “closed” with Trump favors the US, but that the deal is necessary to provide business stability and security. Commission President Ursula von der Laene previously described it as “a strong, if not perfect agreement”.
This move comes even when Trump has threatened to impose duties and other sanctions on countries taxing online services, without specifying which countries will target and whether the EU will be involved. Trump has long denounced the technological and antitrust regulation of the EU for technology, including EU technology.
EU cars and car spare parts are currently subject to a 27.5% duty on exports to the US. Although the US and the EU have entered into a trade agreement that provides for the reduction of US duties in almost all European products to 15%, Trump said this would not apply to cars until legislation was proposed to abolish industrial and other duties.
If the EU proposes the legislation by the end of the month, then the 15% tariff rate for European cars will apply retroactively from August 1. Cars are one of the most important EU export products to the US, with Germany exporting $ 34.9 billion to new cars and spare parts to the US in 2024.
The Commission will omit the impact assessment – the usual process in these cases – on the proposal, in an effort to move forward quickly, said sources, who spoke on condition of anonymity.